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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.

Taxation

  • 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
Wellness 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.

 

Self-Directed RRSP

Catastrophic Medical and Travel insurance