Accidental Death and Dismemberment and Critical Illness Become Taxable Benefits
Following the announcement of the federal government on March 29, 2012, employer-paid premiums for Accidental Death and Dismemberment (AD&D) and for Critical Illness (CI) insurance will become taxable benefits to employees across Canada. These changes will apply to employer-paid premiums starting January 2013.
Employer-paid premiums for private health services plans (including health, drug and dental plans) will not be affected and will continue to be non-taxable benefits for federal income tax purposes. Please note that in Quebec, employer-paid premiums for such plans will remain nontaxable benefits for federal income tax purposes, but taxable at the provincial level.
If you have any questions regarding this matter, please contact your benefits advisor or your Industrial Alliance group account executive.