Taxable Benefit Report

"Administration has never been so simple".  Prepare your employee T4's with the aid of this report. 

Quick Review of Income taxes on Employee Benefits

Life Insurance

Federal Income Tax: Employer contributions toward the cost of employee life insurance are taxable benefits.

Accidental Death & Dismemberment

Federal Income Tax: Employer contributions toward the cost of accidental death & dismemberment insurance are non-taxable benefits. The benefit however, is taxable when it is claimed and subsequently paid out to the employee.

Note* In Quebec Provincial tax includes the employer contribution towards the cost of Accidental death and dismemberment. 

Disability Insurance

Employer contributions to a disability plan either long-term or short-term are not taxable benefits. The benefit however is taxable when claimed and subsequently paid out to the employee. An employee can offset the taxation of disability income by contributing to the cost of premium.

Medical & Dental Coverage 

Private Health Service Plans are one of the few benefits that do not attract federal income tax. The employer receives a tax deduction for the cost of the benefit and the employees do not pay federal income tax on the cost of the plan or the benefits received. Employees however, can claim, as a medical expense on their T1, any portion of the health and dental premiums they contribute toward.