The Government is considering taxing health and dental plans. Here's why you should care
We have resourced this post from Benefits By Design
Why you should care if health and dental benefits are taxed:
Fewer employers would offer health and dental benefits, choosing instead to simply provide salary and leave coverage up to individuals
Benefits would become less flexible in supporting good health (i.e., HCSA’s may no longer make sense, as they would become taxable)
Wait times would increase as the public health system becomes flooded with people needing care who have lost coverage or had their benefits reduced
Why employers should care:
A tax on health and dental benefits would greatly increase complexity for employers, in terms of:
Payroll (taxing health and dental benefits would increase obligatory contributions to CPP and EI)
HR (organizations without an HR department would have to accommodate employees with health concerns that impact employment on their own)
Plan design (existing plans could become unaffordable)
Any addition to the tax bill already paid by lower- to middle-income Canadians will have ripple effects in terms of disposable household income and savings for the future
Employers who are unable to offer comprehensive benefits would face increased competition for talent and retaining staff as other, larger organizations already pay higher salaries and would feel the impact of such a tax to a lesser degree.
What you can do:
Join thousands of Canadians and send a letter to your MP letting them know you personally rely on your benefits, and you don’t want them taxed.
Share the link to the online petition to educate people on what the government is considering and to encourage them to join the conversation: http://donttaxmyhealthbenefits.ca