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The following questions and answe r s w i l l l o o k a t employer-paid accidental death and dismemberment premiums, assessable earnings under Ontario's employer health tax, and exemptions for employee service awards.
Question: Are employer-paid AD&D premiums now considered a taxable benefit?
Answer: As a result of the 2012 federal budget, employerpaid premiums toward accidental death and dismemberment (AD&D) insurance and critical illness (CI) insurance are to be treated as taxable benefits for any coverage for 2013 and later.
Similar to employer-paid group term life insurance, the taxable benefit amount for AD&D and CI must include the following insurance tax:
* Seven per cent for Manitoba employees
* Eight per cent for Ontario employees
* Nine per cent for Quebec employees
Employer-paid AD&D and CI premiums were already considered taxable benefits provincially in Quebec. The total taxable benefit is subject to C/QPP as well as federal and provincial income tax, and is reported in box 14 and code 40 of the T4 slip and boxes A and L of the RL-1 slip.
Question: I am working on my annual return for Ontario's Employer Health Tax. Can you please confirm what earnings are considered assessable?
Answer: Ontario's Employer Health Tax (EHT) is calculated on Ontario remuneration that is taxable under...