The Federal Government is considering taxing employer contributions made to your group health and dental benefit plans. If this plan is announced in the 2017 federal budget, it means employer contributions made to your group health and dental benefits will be considered taxable income, potentially adding thousands of dollars to your tax bill.
While the government has not yet confirmed its intention to proceed with the measure, and full details of the proposal have yet to emerge, industry advocacy groups have reason to believe such a measure is a real possibility with grave consequences, and could be announced as early as the Spring 2017 Federal Budget.
This tax would negate the income tax break that the Government of Canada provided to middle-class families beginning in 2016. It could increase the tax burden of working families by approximately $1,300 per annum, thereby mostly or completely offsetting up to $680 in income tax relief for middle income earners. Such a change is completely misaligned with the stated objectives of the new Government's goals to help middle and working class families
If you want your employer's contributions to your group health and dental benefits coverage to continue to be tax-free, we encourage you to voice your concern right now. Visit donttaxmyhealthbenefits.ca
and in just a few clicks you can send a letter to your MP and the Minister of Finance.