Taxation of Group Benefit and HSA.

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

* 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.

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