2019 Tax Tips for Group Benefits Advisors
By: Benefits by Design | Sunday March 3, 2019Updated : Tuesday February 7, 2023
Hurray, it’s tax season!
We realize that tax time isn’t exactly everyone’s favourite time of year. That’s why we’re making it just a little bit easier for our Advisor partners with our Tax Quick Facts Guide. This annual tax tip document details critical information about tax implications and rates as they affect group benefit plans for the year.
Benefits by Design (BBD) Inc. makes every effort to ensure this document is accurate and up-to-date. However, legislature and policies may change over time.
What the Tax Quick Facts Guide covers:
- Canada Pension Plan (CPP) annual contribution limits;
- Quebec Pension Plan (QPP) annual contribution limits;
- Employment Insurance (EI) annual updates;
- Quebec Parental Insurance Plan (QPIP) annual updates;
- Registered Pension/Savings Plan annual contribution limits;
- Provincial Medical Plan information, including funding and payroll exemptions;
- Ontario Individual Health Premiums;
- Workers’ Compensation maximum assessable earnings subject to premiums; and
- Group Benefits Taxation, detailing which benefits are taxable or non-taxable.
Why is Taxation Important for Advisors to Know?
We realize taxation isn’t the most interesting subject in the world, but it does have important implications on group benefits plans, and therefore your clients. A well-rounded and knowledgeable Advisor is well suited to remaining competitive and better serving their clients, after all.
For example, the taxable status of Health Care Spending Accounts (HCSA)s and Personal Spending Accounts (PSA)s are extra value-added knowledge that an Advisor can provide to give that next level of customer service to their clients.
Likewise, changes in Employment Insurance (EI) or Registered Retirement Savings Plan (RRSP)s are additional areas of interest for many employers, providing yet another opportunity for you as an Advisor to showcase your knowledge and better serve your clients.
Use this Tax Tips document as a guide and reference point whenever taxation comes up in your conversations with clients (we’re willing to bet that it will).
Why is Taxation Important for Employers to Know?
The tax information included in these Tax Tips documents are important considerations for employers. However, we understand that:
- taxes aren’t the most interesting subject in the world, and;
- employers aren’t expected to be tax experts.
So, instead of reading this document top to bottom, we recommend giving it a glance and speaking with your group insurance Advisor about how these tax changes could affect your business and your benefits plan.
For example, employers benefit from providing certain benefits to their plan. as some benefits can be set up to actually provide you with a tax benefit come tax time. For instance, consider asking about the taxable status of any Health Care Spending Accounts (HCSA)s or Personal Spending Accounts (PSA)s you have on your plan.