Don’t Tax My Health Benefits!


taxRecent media reports suggest the Government of Canada is considering a new federal tax on the employer-paid portion of your health and dental plan coverage.

In 1993, a similar provincial income tax on the employer-paid portion of benefit plans was introduced in Quebec. It resulted in almost 20 per cent of Quebec employers (including up to 50 per cent of small business employers) terminating their group benefit plans. Under the proposed legislation, employee coverage would be considered a taxable benefit (additional income).  So that $500 visit to the dentist, would now have to be declared, not as an expense but as income on your T4.

So What?

Taxing the employer-paid portion of benefit plans may have the following implications:

  • As an employee, you would have to pay tax on the amount of the employer-paid portion of health and dental coverage, as it would be a taxable benefit. While it’s not clear how much such a tax could cost, the additional amount subject to tax might be hundreds or even thousands of dollars.
  • Termination of employer-paid health and dental benefit plans could lead to serious public health issues. According to a recent IPSOS poll, without coverage through group benefit plan, 84% of Canadians would end up delaying or forgoing treatment or medication if they didn’t have coverage. This will ultimately drive up treatment wait times and public health costs.mental-health
  • Among many other health outcomes, Canadians’ mental health will suffer as their covered access to needed psychological and other mental health supports will be reduced.

Take action

You can help protect the health care coverage that over 22 million Canadians rely on. Visit www.donttaxmyhealthbenefits.ca to tell your Member of Parliament and the Minister of Finance that you oppose a tax on your health and dental coverage. To ensure your voice is heard, use the hashtag #donttaxmyhealthbenefits on Facebook, Twitter.

 

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2 thoughts on “Don’t Tax My Health Benefits!

    • Hi Gwendolyn

      Thanks for the kind comments but please, could you be a bit more specific? What exactly did you like about the article? Do you have any questions, that I can help you with?

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