Taxation of Group Benefits and HSA.

The following table illustrates the income tax treatment of employee benefits.

Benefit	Cost Tax Deductible to Employer?	Employer Contributions Taxable to Employee?	Employee Contributions Eligible for Tax Deductions or Credit?	Benefit Taxable When Received?
Accidental Death & Dismemberment	Yes	Yes	No	No
Group Life Insurance	Yes	Yes	No	No
Short-Term Disability	Yes	No	No	Yes/No*
Long-Term Disability	Yes	No	No	Yes/No*
Extended Health Care Plan	Yes	No	Yes	No
Dental Plan	Yes	No	Yes	No
Employee Assistance Plan	Yes	No	No	No

* Short Term Disability (STD) / Long Term Disability (LTD)
If a premium is paid by the employer, then should the employee become disabled the disability benefit is taxable income.
If a premium is paid by the employee, then should the employee become disabled the disability benefit is non-taxable income.
In cases where the costs of the STD or LTD premiums are shared between employer and employee, the employee is entitled to receive benefits equal to his/her contributions on a non-taxable basis in proportion to his/her contribution to the premium.

Please note that Quebec may be different than the above table.

Health Spending Account (HSA).

The following table illustrates the income tax treatment of HSA.

Benefit	Cost Tax Deductible to Employer?	Benefit Taxable to Employee?
CRA Eligible Benefits	Yes	No

Note: Sales tax on HSA premiums differ based on provinces. Please contact us to receive an accurate calculation of administrative fees and taxes levied.

Disclaimer : The above is a general guide and not tax advice. Please consult with an accountant or tax professional.