Keeping your health and dental benefits tax-free

Posted by: Aaron Kroontje on February 14, 2017

The Calgary Chamber has been advocating to keep employer-sponsored health and dental benefits tax-free.

Taxing business health and dental benefits would not simplify Canada’s tax code, increase tax fairness, or improve efficiency in health care delivery. Quite the opposite. Taxing health and dental benefits would increase complexity for Canadian business owners, especially small businesses and leave many Canadian families without the care they need. In fact, 70% of Canadians oppose changes to the current employee health benefits system, with 84% say they would delay or forego treatment if they were not covered under their business health plans.

On February 1, 2017 the Prime Minister announced the federal government would not be taxing these employer benefits. This is a big win for you.

Tax free health and dental benefits make health care plans more affordable for all parties involved: employers, employees, and the government. Removing these benefits would result in many employers scaling back, or possibly even removing their health care packages. When Quebec reduced its tax benefits on employer plans, almost 20% of all companies and 50% of small employers removed their benefit offerings. 

In these tough times and with ever increasing cumulative costs burden on business, keeping employer health and dental benefits tax-free is real achievement for the Calgary business community.