Insurance

Group Term Life Insurance

Rules of Application

• Applicable to employees that are insured at any time in the year under a group life insurance policy.
• The premiums must relate to life insurance and be paid by the employer.

Computation of Benefit

• Benefit = Total amount of group life insurance premiums (including sales taxes) paid by the employer.
• Reduced by any employee reimbursements.
• The taxable benefit for group term life insurance premiums is not subject to E.I. premiums, however, is subject to QPP.

Private Health Insurance

Rules of Application

• Private health insurance premiums paid by an employer are taxable benefits only for Quebec purposes.
• Insurance for medical, hospital, dental and eye care.

Computation of Benefit

• A = Total benefits and tax paid for all employees for a specific coverage.
• B = # of days during which particular employee had this specific coverage.
• C = # of employee – days of coverage - specific coverage.
• D = Administrative charges, operating costs including related taxes.
• E = # of days during which the employee had coverage.
• F = # of employee – days of coverage.

• Reduced by any employee reimbursements.
• Includes sales tax on premiums.

Multi-Employer Insurance Plans

• Industry plans (e.g. union, joint committee, etc.)
• Separate plan administrator
• Employer produces Relevé 1
• Plan administrator produces Relevé 22
• Reconciliation by employee
• Relevé 1 – put data re benefit in boxes A and P and as a memo entry.