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Are Extended Health Benefits & Life Insurance Taxable?

Problem Details:

Are extended health premiums taxable? What about life insurance?

 

Solution:

The employer's contributions for Life & Dependent Life Insurance and AD&D Insurance premiums are taxable to the employee. The premium amounts are added to the T4s and when death benefits are paid to the beneficiary, they are not taxable.   

Extended Health, Vision, and Dental, employer contributions are tax-free and do not need to be reported on the T4. They are not pensionable or insurable.

For a summary of group benefits and their taxation status, click Group Benefits Taxation Summary.  See also Are MSP Benefits Taxable?

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