Group Benefit Taxation

* Yes for Quebec

** Yes, if any part of the short-term or long-term disability premium is paid by the employer. No, if the entire short-term or long-term disability premium is paid by the employee. Where the costs of the short-term or long-term disability plan are shared between employer and employee, the employee is entitled to receive benefits equal to his/her contributions on a non-taxable basis.

HARMONIZED SALES TAX (HST)

The federal government charges HST on the administration fees for ASO plans.

PROVINCIAL PREMIUM TAX (PPT)

Ontario charges 2% Provincial Premium Tax on the cost of group life and health benefits. (*1)

Alberta charges 3% Provincial Premium Tax on the cost of group life and health benefits.

Quebec charges 3.3% Provincial Premium Tax on the cost of group life and health benefits. (*1)

Newfoundland and Labrador charge 5% Provincial Premium Tax on funded life and health benefits.

Nova Scotia charges 4% Provincial Premium Tax on funded life and health benefits.

(*1) Provincial Premium Tax (PPT) is also charged on the PPT if it forms part of the premium billed by an insurer.

PROVINCIAL RETAIL SALES TAX (RST)

Ontario charges 8% Retail Sales Tax on group life and health benefits. (*2)

Quebec charges 9% Retail Sales Tax on group life and health benefits.

(*2) Retail Sales Tax is also charged on the Provincial Premium Tax if it forms part of the premium billed by an insurer.

PROVINCIAL INCOME TAX

The employer portion of health and dental premiums is included in the tax base for Quebec.