Group Insurance – TAXATION – Ontario




A common question asked by employers with a group insurance benefits plan is:


What is taxable and non taxable to employees?


The following chart easily answers that question.

It clearly illustrates the tax treatment of both group insurance benefits and group insurance premiums for both the employer and the employee.

For your convenience, I have made it downloadable as a PDF so you can print and put it in a place for easy reference.  This Group Insurance Taxation Chart was last updated February 2015.


Group Insurance Taxation - Ontario - Updated February 2015


Note:  Effective January 1, 2015 – CRA changed the rules regarding withholding taxes on taxable group disability claim cheques.  CRA now requires insurers to deduct the appropriate tax deductions from the taxable claim cheques.
See my blog post    here for more info on CRA Disability Claim change:

For a Group Insurance Quotation visit:      Group Insurance Quotation Page