MEMO
TO: ALL STAFF
DATE: SEPTEMBER 14
TH
, 2023
RE: ENHANCED GROUP BENEFITS
We are pleased to announce that our organization is going to start offering enhanced benefits for our
employees, including Accidental Death and Dismemberment as well as Vision Coverage starting in two
months time. To show support for our employees and their families, we will be sharing the cost of the
premiums equally with you, the employee, 50/50, so that each is only paying 50% of the premium.
These new premiums will impact your net pay slightly, and I will explain the breakdown of each
benefit for you as follows:
AD&D: The employer contribution to the premium, is considered a non-cash taxable benefit for you, as a
result, the employer paid premiums plus the 7% RST we pay here in Manitoba are considered
pensionable for C/QPP contributions and federal and provincial income taxes. The CRA states that cash
and non cash taxable benefits are subject to CPP deductions (
https://www.canada.ca/content/dam/cra-
arc/formspubs/pub/t4001/t4001-22e.pdf
, pg. 15) so you, the employee, will be paying taxes on the
employer's portion of the premium which will result in a decrease from your net pay. The CRA
Vision Coverage: The employer paid premium for private health insurance plans for all non-Quebec
employees is the value of the premium, plus the tax on insurance premiums, and is considered a non-
taxable benefit to you, the employee. (PF1, 3-25) So the 50% vision care premium paid by the employer
is not taxable and is not subject to statutory deductions. This benefit will not affect your net pay.
So as a bottom line, only the Accidental Death and Dismemberment Benefit is affecting your net pay and
you are gaining priceless peace of mind at very little cost to you. We hope you will see the value in these
new benefits as we do and know that the organization wants to invest in their employees to help
support and appreciate them.
We will be hosting a Q&A session at a date to be determined where you can bring any questions or
concerns about these new benefits to light.
Sincerely,
Kristy Hoare
Payroll Manager
