And soon after that comes the other most wonderful time of the year: tax time!
Just kidding (and we’re sorry if that song is now stuck in your head), but as scary as it might be, 2018 is coming to a close and tax time is just around the corner. We’re taking steps to make things easier for Advisors and our groups this year with three quality of life improvements!
#1. Annual Tax Tip Documents
We’ve compiled yearly tax tips, and 2019 will be no exception. These documents detail critical information about tax implications and rates as they affect group benefit plans for the year. Remember the removal and then subsequent reinstatement of the Saskatchewan Provincial Sales Tax (PST) from insurance premiums last year? We sure do.
Take a look at previous years’ tips to know what to expect from 2019’s (coming soon!):
#2. Taxable and Non-Taxable Benefits for Your Clients
As tax time approaches, it’s important to take the time to remind your clients about their taxable and non-taxable benefits, and how each can affect things when it comes to filing their taxes.
For example, some benefits (such as a Health Care Spending Account) are non-taxable, which is a great bonus for employers! At tax time, employers can add their total Health Care Spending Account (HCSA) spend, as claimed by employees, as a corporate tax incentive.
On the flip side, some benefits (such as a Personal Spending Account) are considered a taxable benefit. A Personal Spending Account (PSA) is deemed to be a part of an employee’s total compensation package, and the dollars will need to be included on an employee’s T4!
It’s also worth reminding employers that any savings options provided to employees can be taxable as well – things like RRSPs or TFSAs can be added too! Advisors looking to bring added value to clients with any of these benefits would do well to remind employers about them.
#3. Download your T4A Straight from Nomad
Advisors can now get ahead of the game by updating their preferences on Nomad, our online benefits administration portal, to download their T4A as a PDF! Login and select “My Account” and click on “T4A Method of Delivery”. Once inside, you can edit your preferences by clicking the “edit” button and moving the slider from “Mail” to “Download Copy”.
There’s nothing to download yet (we’ll let you know when), but changing your preferences now will ensure you get your T4A as early as possible.