Acco340Lecture 2-3 - Employment Income

Drugs dental are specifically excluded as federal

Info icon This preview shows pages 13–16. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost of premiums paid by the employer for private group health care plans (eg. drugs, dental) are specifically  excluded as federal taxable benefits    (but taxable for Quebec income tax filing ) Any employee contributions to help fund Health Care Plans (but not Disability Plans)   can be treated as   medical expenses eligible for a credit against taxes payable.
Image of page 13

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Benefits received from the plan, eg, actual prescription costs paid by the employer or insurance company)  are   not taxable benefits Note: Employer payment of the employee’s obligation to pay premiums to a provincial or federal health care plans, are taxable  benefits.  No taxable benefit accrues in those provinces (eg. Quebec, Ontario, Manitoba) where there are no individual premiums  required (eg. funded out of general taxes).                                                                         SUMMARY                                                                               WEEKS 2 &3                                                GROUP LIFE  INSURANCE PLAN COST OF THE PLAN: - Premiums paid by employer to fund Plan== are included as an  employee taxable benefit   - Employee contributions to fund Plan== are NOT deductible by employee BENEFITS RECEIVED FROM THE PLAN: -NOT an employee taxable benefit                                            GROUP DISABILITY INSURANCE PLAN COST OFTHE  PLAN: - Premiums paid by employer to fund Plan== are NOT included as an employee taxable benefit  - Employee contributions to fund Plan== are NOT deductible by employee,  except if the benefits                                                                      received are taxable  (see Note 1 below)  BENEFITS RECEIVED FROM THE PLAN: -NOT a taxable benefit  if the plan was funded entirely by employee contributions - Are an employee taxable benefit  if employer made ANY contributions whatsoever to the Plan         
Image of page 14
NOTE 1: If payments received from the plan are considered to be taxable (because the employer   made a funding contribution), then the employee can deduct past contributions made to Plan (not   previously deducted) as a reduction of this taxable benefit only                                     GROUP HEALTH  INSURANCE PLAN COST OF PLAN: - Premiums paid by employer to fund Plan== are NOT included as an employee taxable benefit -Employee contributions to fund Plan== are NOT directly deductible by the employee, however such   contributions can be 
Image of page 15

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 16
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern