At RISK – Tax Free Health Care Benefits
In December 2016, the Federal Liberal Government began discussing the taxation of health and dental benefits paid for by employers – making this a taxable health benefit to employees.
This means if you are currently making $60,000 and your health benefits are $5,000 you will be taxed in the $65,000 tax bracket.
While initially, the feeling was that this was just an exercise, the tone has taken a dramatic turn. It is now a very real and serious threat to one of the last tax-free and tax-efficient benefits an Employer can provide to their Employees.
Taxing health care benefits would cost employees hundreds or thousands of dollars each year, and result in fewer employers willing to offer these benefits entirely. This decision would mean many lower income and middle-class Canadians will not be able to afford access to necessary and preventative care such as vision care, prescription drug, mental health services, nutrition counselling, dental care, occupational therapy, physiotherapy, chiropractic, and massage therapy.
Finance Canada estimates that exempting employer-provided health benefits results in $2.9 Billion in forgone tax revenue. However, it has been estimated that this tax will generate the need for $22 Billion in additional health care benefits for Canadians.
What Can You Do to Prevent this Change?
Share the link to the online petition to educate people on what the government is considering and to encourage them to join the conversation: http://donttaxmyhealthbenefits.ca
Join thousands of Canadians and send a letter to your MP letting them know you personally rely on your benefits, and you don’t want them taxed.
We Need to Come Together and Take Action to Prevent This Change in Taxation from Occurring. Stand Up, Be Heard.
Post Written By:
Jason Conley, BA, RHU
Rogers Insurance Ltd.