Flexible Benefit Options
This lists each of the benefit options available to you. Some of the benefits in the Plan are insured. These benefits will be subject to any restrictions or other terms and conditions imposed by the insurance company.
- Benefits can be taxable or non-taxable and are subject to the rules of the Canadian Income Tax Act and Canada Revenue Agency.
- If the employee pays for the benefit they receive the benefit tax-free.
- Conversely, if the benefit is employer paid the benefit received may be taxable.
- An important exception to this is that generally, health and dental costs covered by the employer are non-taxable.
The table below outlines the general taxation rules for benefits.
Income Tax Treatment of Benefits Received by Employee
|Benefit Type||If Employer Pays Cost of Benefit||If Employee Pays Cost of Benefit|
|Health & Dental||Not taxable||Not taxable|
|Disability (Paycheque Insurance)||Taxable||Not taxable|
|Life Insurance||Taxable||Not taxable|
|Accidental Death & Dismemberment (AD&D)||Taxable||Not taxable|
|Critical Illness||Taxable||Not taxable|
|Employee Mortgage Interest Subsidy *||Not taxable *||Not taxable *|
* This benefit is not taxable if all conditions are met by the company and employee.
Catastrophic Medical and Travel insurance