We wish to make you aware of a potential development that could have serious implications for you and your family and let you know how you can take action on this matter.
The federal government is considering taxing employer contributions to group health benefit plans and could announce the new tax as early as its spring, 2017 Federal Budget.
Why this matters to you:
Currently, employer paid health benefit plans are a tax-deductible benefit and are not included as part of your taxable income.
If the federal government introduces the new tax, the premiums we pay on your group benefit plans would no longer be exempt from federal tax. This could significantly increase your tax bill, and reduce your take home pay.
As an example, Extended Health Care Benefits, including Dental for family coverage, will cost approximately $5,580 per year. This amount would be added to your taxable income hence requiring you to pay taxes on the additional amount at your applicable taxation rate.
How to take action:
You can make your voice heard and urge the federal government not to tax health benefit plans. Simply visit http://donttaxmyhealthbenefits.ca// to easily send a letter to your Member of Parliament and the Minister of Finance.