Canadian Group Dental Plan Coverage is a Taxable Expense
The tax code of Canada allows employers to provide dental coverage to its employees as a business expense and a non-taxable benefit. Group dental benefits have evolved around this encouragement to the point that what you the employer can provide, the employees can’t buy themselves.
The group dental benefit is an attractive benefit to employees and a recognized benefit of employment which attracts and retains top human resource talent.
Group Dental Insurance: Questions and Best Answers
Group dental can include basic & preventive, major and orthodontic services. The coverage percentage and amounts are chosen by the plan sponsor.
There are multiple plan types with group dental, insured experienced rated, insured pooled and self insured. All plan types can be good it just depends on your situation.
The insurer or service provider generally pays the dentist for your covered services within the limits of the plan.
Dental benefits provided through a program are a non taxable benefit. This favourable tax treatment has allowed the group benefit market to develop around this tax treatment. What an employer can buy is generally far and above what an employee can buy for themselves.
Benefits of Having Group Dental Insurance for your Employees
Not all companies offer Dental Insurance. Having a Group Dental Insurance Plan is a huge benefit for many employees. It often makes or breaks their willingness to work for you. You need an experienced benefits consultant working for you, call us 604-936-4325 today.