If the group insurance plan provides coverage backed by an insurance contract with an insurance corporation, the taxable benefit related to this coverage is equal to the result of the following calculation:

• the premium (and related 9% tax) paid for the employee's coverage (such as individual, family or single-parent coverage) and benefits (such as medical, hospital or dental expenses) for the year (in the case of a private health services plan, click Services Insured by the RAMQ – Coverage Backed by an Insurance Contract);

minus

• the total of the following amounts:
  • the amount reimbursed by the employee during the year,
  • the dividends, returns or refunds of premiums you received during the year with respect to the employee's coverage and benefits.

Dividends, returns or refunds of premiums

If you receive an amount during the year as a dividend, return or refund of premiums (referred to collectively on this page as a “refund”) that is determined on all the types of benefits and coverage provided under the plan, the portion of the refund (including the reimbursement of the related tax) that reduces the value of the benefit provided to a given employee is equal to the result of the following calculation: the total of any refunds you received (except for the employees' share in the cost of the plan, if this share was remitted to the employees during the year), multiplied by the premium paid for the employee and divided by the total premiums paid for all employees.

If the refund is determined only on certain types of benefits or coverage provided under the plan, the taxable benefit is reduced only for those employees who have the types of benefits or coverage on which the refund is calculated.

The portion of the refund (including the reimbursement of the related tax) that reduces the value of the benefit paid to a given employee is equal to the result of the following calculation: the total of any refunds you received (except for the employees' share in the cost of the plan, if this share was remitted to the employees during the year), multiplied by the premium paid for the employee's benefits and coverage and divided by the total premiums paid for all employees that have the same types of benefits and coverage as the employee.

If you remit to an employee the portion of the refund that corresponds to the employee's share in the cost of the plan, do not enter this amount on the employee's RL-1 slip (see courtesy translation RL-1-T). However, in the case of a private health services plan, you must subtract this amount from the total amount of the contribution (or premium) that was paid by the employee to the plan and that will entitle the employee to the tax credit for medical expenses when the employee files a tax return. To report this amount on the employee's RL-1 slip, you can enter “235” in a blank box, followed by the amount. Without this information, the employee may ask you for supporting documents. Do not include the amount in box A.

If you remit to an employee the portion of the refund that corresponds to your share in the cost of the plan, you must include that amount in boxes A and L and, where applicable, in box G of the employee's RL-1 slip. For more information, go to the Benefit Provided to an Employee page.