The Implications of Taxing Employer-Paid Health and Dental Benefits

The Conference Board of Canada, 41 pages, February 13, 2017
Briefing by
4.5/5 based on 4 reviews
(You must be signed in and entitled to rate this report)
The federal government is reviewing the taxation of employer-paid health and dental benefits. This briefing looks at financial implications for Canadian tax payers who receive these benefits.

Document Highlights

Many Canadians currently receive extended health and dental coverage as a non-taxable benefit from their employer. The federal government recently announced a review of tax expenditures, and one of the measures examined is making employer-paid health and dental benefits subject to income tax, valued at $2.7 billion in foregone federal revenue.

The Implications of Taxing Employer-Paid Health and Dental Benefits briefing estimates the value of these benefits at $1,462 for single coverage and $3,521 for family coverage, meaning Canadians could pay over $1,000 in additional income tax.

The current system encourages Canadians to use services—such as dental and vision care and prescription drugs, among others—which in turn promotes population health and wellness. Without such a system, Canadians could pay more in medical expenses and face reduced access to health services not covered under provincial health insurance plans.

Access document

(you will be asked to sign-in)

To see if you are entitled to get this research for free, take a minute and create a free e-Library account. This will let us determine if someone else at your organization has already purchased access to this material.