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New Taxable Benefits and Employer Contribution Reports Available for Accidental Death and Dismemberment and Critical Illness

News Release

Effective January 1, 2013, all Accidental Death and Dismemberment (AD&D) and Critical Illness (CI) products became taxable benefits under federal law. These changes apply to premium contributions made by employers after March 28, 2012, to the extent that such contributions relate to coverage in force after 2012.

Any such employer contributions made after March 28, 2012, and before 2013, will be included in the employee’s income for 2013.

Industrial Alliance (IA) has made the following changes to its Taxable Benefits and Employer Contribution report found on Web@dmin in order to reflect these tax changes:

  • When choosing a date equal to or beyond January 1, 2013, the calculated taxable benefit result will include AD&D and CI products.
  • Prior to January 1, 2013, premiums for CI were included within the health premiums. The CI premiums will now be considered separately for the calculation of the taxable benefit.
  • The order in which employer contributions are distributed has been changed. Details of the distributions are included in the Taxable Benefits User Guide found in Step 1 of the Taxable Benefits and Employer Contribution report.
  • The heading on the PDF, CSV and HTML reports has been changed to «Federal» instead of «Federal Life».

If you do not have access to Web@dmin or for more information about taxable benefits, please contact your benefits advisor or your Industrial Alliance group account executive.