Tax Impact on Group Insurance

This table shows the tax impact on group insurance plans.

Benefits	CANADA			QUEBEC
	Expenses* deductible for employer	Employer’s contribution taxable for employee	Benefits taxable for employee	Expenses* deductible for employer	Employer’s contribution taxable for employee	Benefits taxable for employee
Life	Yes	Yes	No	Yes	Yes	No
Accidental Death and Dismemberment, Dismemberment due to Illness and Critical Illnesses	Yes	No	No	Yes	Yes	No
Dependent’s Life	Yes	Yes	No	Yes	Yes	No
Short Term Disability	Yes	No	Yes**	Yes	No	Yes**
Long Term Disability	Yes	No	Yes**	Yes	No	Yes**
Health	Yes	No	No	Yes	Yes	No
Dental Care	Yes	No	No	Yes	Yes	No

*Expenses correspond to the portion of the premiums paid by the employer for this benefit.

**If the employer pays any part of the premium.

Please note that the 9% provincial tax must be included in the calculation of the taxable benefit. It must also be noted that for the provincial government, any taxable benefit is an integral part of the insurable earnings used to calculate the employee and employer contributions to the Quebec Pension Plan. Furthemore, employers must include such taxable benefits in their total payroll when calculating Health Services Fund, CSST and CNT contributions. Taxable benefits must be calculated for every pay period so that payments to the government may be correctly determined.