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Oct 7, 2022 · When it comes to health insurance, your dependent can be your spouse or partner, and any children you have. Your dependents are covered under your plan which means they could be entitled to benefits you might have through your workplace or a personal plan you hold. FYI: This doesn’t happen automatically, so make sure you add any dependents at ...
- Overview
- Note
- Calculating the benefit
- Payroll deductions
- Reporting the benefit
- Forms and publications
This section applies to current, former, and retired employees.
Premiums you pay for employees' group life insurance that is not group term insurance or optional dependant life insurance are also a taxable benefit.
A group term life insurance policy is one for which the only amounts payable by the insurer are policy dividends, experience rating refunds, and amounts payable on the death or disability of an employee, former employee, retired employee, or their covered dependants.
Term insurance is any life insurance under a group term life insurance policy other than insurance for which a lump-sum premium has become payable or has been paid. Life insurance for current employees would usually be term insurance, although it is sometimes provided for retired employees.
A lump-sum premium is a premium for insurance on an individual's life where all or part of the premium is for insurance for a period that extends more than 13 months after the payment of the premium (or more than 13 months after the time the premium became payable, if it is paid after it became payable).
If the premiums are paid regularly and the premium rate for each individual does not depend on age or gender, the benefit is:
•the premiums payable for term insurance on the individual's life
plus
•the total of all sales taxes and excise taxes, excluding GST/HST that apply to the individual's insurance coverage
•any provincial insurance levies or sales tax (8% for Ontario, 7% for Manitoba, and 9% for Quebec) that employers have to pay on some insurance premiums
minus
If the benefit is taxable, it is also pensionable. However, it is not insurable since it is a non-cash benefit. Deduct income tax and CPP contributions, but do not deduct EI premiums.
Report the benefit for current employees and employees who are on a leave of absence (such as maternity leave) in box 14, "Employment income," and in the "Other information" area under code 40 at the bottom of the employee's T4 slip.
Except as indicated in the next paragraph, for former employees or retirees, report the benefit on a T4A slip using code 119 in the "Other information" area, regardless of the amount. The $500 reporting threshold for T4A slips, which is described in Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary, does not apply.
•Form T4A, Statement of Pension, Retirement, Annuity, and Other Income
•Guide RC4157, Deducting Income Tax on Pension and Other Income, and Filing the T4A Slip and Summary
A “dependent” is defined as a person, especially a family member, who relies on another for financial support. Within group benefits plans, this refers specifically to your spouse and children. Parents, grandparents, and cousins for example, are not eligible dependents in a group benefits plan. Your spouse may be your legally married ...
Co-insurance. Co-insurance is the word used to describe the way the cost of a service is shared between you and your plan. It exists in addition to any deductibles. So, for example, an 80% co-insurance means that after the deductible has been satisfied, your plan will cover up to 80% of the eligible amount of the claim and you would pay the rest.
Nov 14, 2023 · Definition of a Dependent on Insurance. When it comes to insurance coverage, a dependent is a person who is eligible to receive benefits under an individual or group insurance policy. Dependents can include spouses, children, and in some cases, other family members or individuals with certain qualifying relationships.
Aug 20, 2024 · Employee benefits can offset certain costs and help both parents and children alike. We’ll define what constitutes a dependent child in group insurance, and what specific benefits children can access coverage under. Definition of dependent children . A dependent is someone who relies on another person, usually a spouse or child, for financial ...
Aug 25, 2023 · Dependent life insurance usually covers immediate family members, such as spouses and children. Spouses are often the primary dependents, relying on the insured person’s income to maintain their standard of living. Coverage for spouses can help with expenses like mortgage payments, daily living costs, and future goals.
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