Group insurance brokers worried about taxation of health benefits
Two-thirds (67 per cent) of group insurance brokers said their client base would decrease if employer-paid benefits became taxable income, according to a survey by the Canadian Group Insurance Brokers and Digital Journal Group.
In February 2017, Prime Minister Justin Trudeau said in Parliament his government wasn’t planning to tax employee health and dental plans. However, the Parliamentary Budget Office released a report in May 2018 looking into the taxation of employer-provided health benefits.
“This leaves the Canadian broker community uncertain about this issue,” said Dave Patriarche, founder of the Canadian Group Insurance Brokers, in a news release. “The taxation of benefits will cause lost jobs across the industry, increased costs to taxpayers and a reduction in benefits for many.”