Contributions to a Group Insurance Plan (Including a Health Services Plan)
Contributions paid by the employer
Contributions (or premiums) you pay under a group insurance plan for the coverage that an employee receives during the year because of their office or employment (past, present or future) constitute a taxable benefit for the employee.
However, contributions for coverage of total or partial loss of income from an office or employment that you pay to a group insurance plan (if wage loss benefits are payable periodically) or to an employee life and health trust do not constitute a taxable benefit for the employee.
The type of plan and the coverage provided to the employee determine the value of the benefit. To calculate the value of the benefit, see the following pages:
- Plan Backed by an Insurance Contract
- Plan Not Backed by an Insurance Contract
- Services Insured by the RAMQ – Coverage Backed by an Insurance Contract
- Services Insured by the RAMQ – Coverage Not Backed by an Insurance Contract
- Paid-Up Life Insurance
Include the value of the benefit in boxes A and J of the employee's RL-1 slip (see courtesy translation RL-1-T) if the coverage is under a private health services plan and in boxes A and L if the coverage is under any other type of plan. You may also have to include the value of the benefit in box G of the RL-1 slip (see the Benefit Provided to an Employee page).
The value of the taxable benefit calculated over the course of the year is based on estimates and must be apportioned over all the pay periods in the year. You can do the calculation using any reasonable estimation method (such as basing the estimates on data for the previous year or on a hypothetical premium). At the end of the year, you have to use the actual data to determine the actual value of the benefit to be entered on the employee's RL-1 slip.
Contributions paid for the benefit of the surviving spouse of a deceased employee
Contributions (or premiums) you pay under a private health services plan for coverage that the surviving spouse or the dependants of a deceased employee receive do not constitute a taxable benefit.
Contributions paid by a current, former or retired employee
Contributions (or premiums) paid by a current, former or retired employee to a private health services plan that covers, for example, medical or dental costs, do not constitute a taxable benefit for the employee.
However, the contributions (or premiums) paid may entitle the employee to claim a tax credit for medical expenses in their income tax return.
To report the amounts that the employee paid to such a plan on the RL-1 slip (see courtesy translation RL-1-T), enter “235” in a blank box, followed by the amount. If you do not enter the amount on the RL-1 slip, the employee may ask you for supporting documents. Do not include this amount in box A.