Certain federal and provincial taxes apply to group benefit plans

Certain federal and provincial taxes apply to group benefitplans. The rules vary depending upon the province and the type of plan --Administrative Services Only (ASO), Minimum Premium Plan (MPP) or Insured. Because of this, it can be quite confusing just keeping the rules straight. To make it a bit easier, the following is an overview of the taxation rulesas they apply to different benefit plans across Canada. We encourage youtodetach this page and keep it as a reference.
This information is provided by The Coles Group solely as a guide, and is not intended to provide taxation or legal advice. Any queries you may have should be directed to your professional tax advisor.

Taxation Rules - Taxable Benefits for Employees

Applicable to all Types of Benefit Plans

	Are premiums paid by the employer taxable income to the employee?		Is the benefit taxable to the employee?¹
Coverage	Federal Tax Rules²	Quebec Tax Rules
Life Dependent Life	Yes	Yes	No
Accidental Death and Dismemberment	No	Yes	No
Extended Health Care Dental	No	Yes	No
Weekly Indemnity Long Term Disability	No	No	If the employer pays any portion of the premium: YES If the employee pays the full premium: NO

¹ Applicable underbothfederal and provincial tax rules for all provinces,includingQuebec.

²The federal tax rules apply to federal and provincial income taxes in allprovinces except Quebec, where separate provincial income tax rules apply.

Calculating Taxable Benefits

Employers can use the following sources for reference when calculating employees’ taxable benefits:

Revenue Canada -- Employers’Guide to Payroll Deductions
Revenue Quebec -- Employmentand other income -- guide to filing the RL-1 slip