As we slide into tax-season, it is important for you SmallBiz Owners out there to remember that if you make contributions to a private health services plan (such as medical or dental plans) for employees, there is no taxable benefit to the employees.
Include the amount that the employee paid on a T4 slip in the “Other information” area under code 85. The use of code 85 is optional. If you do not enter code 85, we may ask the employee to provide supporting documents.
Use the T4A slip to report these amounts for former employees or retired employees. Enter the amount under code 135, “Recipient-paid premiums for private health services plans,” in the “Other information” area at the bottom of the T4A slip.
For more information on private health services plans, go to the CRA website.
Hope this helps.
Located in Cambridge, ON Sharkey Group Insurance provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.