pcuz

Guys,

If I get healthcare paid for by my employer in Canada via a group healthcare plan do they tax you for it over there like they would in the UK?

Thanks,

P

Judy in Calgary

If your employer pays provincial health care insurance premiums on your behalf, those premiums are considered to be a taxable benefit.

For that reason, many Canadian employers do not pay those premiums on behalf of employees.

The employer may deduct the premium from your salary at source, and remit it on your behalf to the provincial health care insurance plan. This is not taxable, because the premium is coming out of your pay cheque. Usually you can opt out of that arrangement, and pay the premiums to the provincial health care insurance plan yourself.

However, it's convenient to let the employer do it on your behalf. You really don't have anything to lose, as far as I know. If you leave that employer, you can simply change the way in which your premiums are paid.

Canada Revenue Agency has a page called Benefits and allowances that explains which benefits are taxable.
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JonboyE

What Judy says about provincial health care premiums is quite correct.

However, the premiums an employer pays to group healthcare plan for such items as extended medical costs, drug costs, dental and vision care is not a taxable benefit to the employee.

A couple of things to watch out for:

1/ if the group healthcare plan includes life assurance, then the part of the premiums applicable to the life assurance is a taxable benefit.

2/ Some group healthcare plans also include disability or other wage loss insurance. Here there is a choice. If the employer pays any part of the premium then it is not a taxable benefit. However, if you make a claim then all benefits are taxable. If you pay the premium (i.e. it is deducted from your after-tax wages) then any claims are tax free.

pcuz

Thanks Guys that helps a lot. I think it is a group plan so will hopefully be tax free!

Cookie

We also kept all receipts for out of pocket expenses eg 20% prescription/dental/optical charge we paid.

These and your bi-weekly payments into your health care plan will give you additional tax credits when you submit your annual tax form

Our medical insurance plan will allow you to print off an annual statement online.