* Yes for Quebec
** Yes, if any part of the short-term or long-term disability
premium is paid by the employer. No, if the entire short-term
or long-term disability premium is paid by the employee.
Where the costs of the short-term or long-term disability
plan are shared between employer and employee, the employee
is entitled to receive benefits equal to his/her contributions
on a non-taxable basis.
The federal government charges 6% GST on the administration
charges for benefits.
Provincial Premium Tax (PPT)
Ontario charges 2% Provincial Premium Tax on the
cost of group life and health benefits.
Quebec charges 2.35% Provincial Premium Tax on the cost
of group life and health benefits.
Nova Scotia and Newfoundland charge 4% Provincial Premium
Tax on funded life and health benefits.
1Provincial Premium Tax (PPT) is also charged on the PPT
if it forms part of the premium billed by an insurer.
Provincial Retail Sales Tax (RST)
Ontario charges 8% Retail Sales Tax on group life
and health benefits. Quebec charges 9% Retail Sales Tax
on group life and health benefits. Retail Sales Tax is also
charged on the Provincial Premium Tax if it forms part of
the premium billed by an insurer.
Provincial Income Tax
The employer portion of health and dental premiums
is included in the tax base for Quebec.