Group sickness and accident insurance benefits

The 2012 budget included something that is going to increase how much tax you pay for 2013.

Employers who paid for these benefits on your behalf, not those who deducted these premiums from your pay cheque will be required to add that benefit to your income for 2013.

Do you know how much those contributions are currently? 

Ask your employer (payroll dept) if the premiums don't appear as an employer paid, but tax free for 2012, benefit shown on your pay cheque.  Since your employer just paid those premiums for you, you may never have known how much was spent on that benefit for you.

Wage loss replacement benefits paid by your employer will continue to be a tax free benefit.  That's because when you collect on that type of insurance, if your employer paid the premiums, you will pay tax on any claims on that policy.

If you paid those premiums for wage loss replacement yourself, any resulting claims would be tax free income.  If you aren't sure whether you pay the premiums, look for LTD (Long Term Disability) It should show up as a deduction from net pay.  If you don't pay the premiums, if you have a claim on your LTD, your income from that insurance plan will be taxable to you.

http://www.cra-arc.gc.ca/gncy/bdgt/2012/qa06-eng.html

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