Employer-paid health and dental plans are currently a non-taxable benefit for you. However, the federal government is considering changing this. This would have significant consequences, such as an increase in the federal and provincial income taxes that you pay. (Quebec employees have paid provincial income tax on employer-paid health and dental plans for several years.) It could also translate to increases to CPP and EI contributions. All of these changes mean that you could pay up to $1,200 more in taxes each year. Blue Cross has a chart with more information and asks you to get involved at donttaxmyhealthbenefits.ca. The Canadian Labour Congress is getting involved and sent a letter to federal government asking them to reconsider.
