Tax Update: Benefits are Important!

Thanks to the voices of all who encouraged the government not to tax employer-paid premiums for Health and Dental benefits, the government has agreed it will not be moving forward with this. In fact, Prime Minister Trudeau indicated it was never in the plan.

“The concern of Canadians was certainly wide-spread and it served to remind us how important benefits are.”
Lizann Reitmeier, Health Practice Leader, Canada

Before the decision, I heard people talking about the possibility of benefits being taxed in the waiting room at the doctor’s office and in the tile store. Average people; people who didn’t know me or what I do for a living were concerned about the impact such a move might have on them and their families.

The concern of Canadians was certainly wide-spread and it served to remind us how important benefits are. Email campaigns were organized and MPs crafted solid responses to constituents. It was a great opportunity for communication and solidarity.

It’s welcome news that the government of Canada listens to the people. Benefits help maintain the physical and financial health of Canadians. Employer plans shoulder a significant cost of healthcare and coverage for pharmaceuticals has decreased hospital stays and surgical interventions, reducing the burden on provincial health plans.

The reaction of Canadians serves as reminder to appreciate your benefit plan and treat it like the important part of your compensation that it is.

 

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