Contributions Paid to a Private Health Services Plan

Source deductions and contributions

A benefit related to contributions you pay to an employee's private health services plan is subject to source deductions and employer contributions during the year. However, the benefit is not subject to Québec parental insurance plan (QPIP) premiums.

Calculation of the value of the benefit 

The value of the benefit must be based on estimates. Any reasonable method may be used (for example, the estimates may be based on data for the previous year or on a hypothetical premium). At the end of the year, however, you must calculate the value of the benefit on the basis of the actual data. 

Contribution paid for the benefit of the surviving spouse of a deceased employee 

The value of the benefit related to the contributions you pay to a private health services plan covering the surviving spouse and the dependants of an employee after the employee's death is tax-exempt.

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