2012 Federal Budget Impacts Taxability of AD&D and Critical Illness Benefits

December 13, 2012

2012 Federal Budget Impacts Taxability of AD&D and Critical Illness Benefits

As a reminder, following the 2012 Federal Budget, all group AD&D and Critical Illness premiums paid by employers will now be considered a taxable benefit to their staff.

Effective January 1, 2013, payroll & bookeeping procedures should be adjusted to reflect the new treatment of employer paid premiums by CRA.

Fundamentally, AD&D  and CI benefits paid by an employer should be treated in the same manner as Life insurance premiums paid by the same.

Please see the attached bulletin for additional details.

Documents

Taxable_Benefits_Notification_Jan_13 - (.pdf)