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Under employer-sponsored group plans it is normal for the employer to pay 100% of the premiums for the employee coverage, although premiums for family coverage
Under employer-sponsored group plans it is normal for the employer to pay 100% of the premiums for the employee coverage, although premiums for family coverage may have to be assumed by the employee/group plan member. Below are a series of statements relating to the taxation of these benefits 1. In most provinces and territories across Canada employer-paid premiums for group health care coverage are a deductible expense to the employer 2. These premiums are considered a taxable benefit in the hands of the covered plan member. 3. Benefits received under the group plan are also tax-free to the plan member and his family. 4. In the province of Qubec, where employer-paid premiums for group health care coverage are a deductible expense to the employer 5. These premiums are treated as a taxable benefit to the covered plan member for the calendar year in which they are paid. 6. Benefits received under the group plan are taxable to the plan member and his family. Two of the above statements are not correct; which ones are they? Select one: a. 2 & 6 b. 1 & 2 C. 4 & 5 d. P2 2 & 3 K
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