December 1, 2013
Tax Changes for 2013
AD&D and Critical Illness Coverage
The 2012 Federal Budget introduced legislation which will result in a taxable benefit to employees for certain employer-paid premiums under group insurance plans. This change will treat Accidental Death and Dismemberment (AD&D) and Critical Illness premium on the same basis as employer-paid group Life insurance and Dependent Life premium.
Effective January 1, 2013, employer-paid premiums for these coverages will be included in the employee’s income as a taxable benefit for Federal tax purposes in all provinces.
Your Chambers Plan billing statement combines group Life premiums (also a taxable benefit), and AD&D premiums, in one column and administrators can use these amounts to calculate the taxable benefit amount for their employees for the 2013 tax year. Our taxable benefit report generator on my-benefits® has been updated to reflect these changes.
Cost Plus Users
Two additional changes affect the tax calculations on any Cost Plus claim submissions for claims submitted January 1, 2013, and later. Effective January 1, QST in the province of Quebec goes up to 14.975% and Quebec premium tax drops from 2.55% to 2.3%.
An updated Cost Plus Reimbursement form can be found on www.chambers.ca.
The Cost Plus calculator on my-benefits can be found under Forms & Tools and has been updated to reflect these changes.
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- Tax Changes for 2013