If you pay premiums yourself, using after-tax money, any benefits you receive are tax-free. The same applies to premiums you pay for an individual policy you own. But any short- or long-term disability benefits you receive in the future from your employer will be taxable. Conversely, if all employees pay their own short or long-term disability premiums, any benefits they receive are tax-free. Are you entitled to a tax refund for your medical expenses?Īre group short- or long-term disability premiums taxable benefits?Įmployer-paid short-term disability or long-term disability premiums are not taxable benefits.You may also be able to claim some health insurance premiums you paid as a tax credit. Outside of Quebec, employer-paid premiums for health insurance benefits like prescription drug coverage, eye and dental care, and the like are not taxable. In Quebec, they are.
What's more, your taxable income includes the amounts paid on your behalf. Some employer-paid premiums are taxable benefits. Are group life and health insurance premiums taxable benefits? Here's how the Canada Revenue Agency (CRA) treats common employee benefits for tax purposes. You may have valuable company benefits, like a cell phone, tuition reimbursement or service awards. But you may or may not have to include the value of these benefits in income. (*Premiums refer to monthly or annual fees.) They report the value of some perks as a taxable benefit, and you must pay tax on those amounts. Have you received your T4 slip for the previous tax year? Are you curious why your income in Box 14 is higher than the salary you earned for the year? That's because your employer must report premiums* they pay for certain group benefits.
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