Call Us Toll Free   1 877-277-0677

Benefit Facts

Disability Benefits Don’t Have to be Taxing

If you became disabled through illness or injury, would you be able to survive financially? Would your personal savings provide sufficient resources to pay for items like food, rent, and everyday expenses?

If you’re like most Canadians, your savings would not maintain your standard of living for very long. And even though the federal government provides disability benefits through the Canada Pension Plan (CPP), the average payment is just under $800.00 a month. That’s probably not enough to live on, especially if you have dependents. Consequently, an illness or injury could cause a catastrophic financial impact on your life, in addition to the emotional and physical effects you may suffer.

The Chambers of Commerce Group Insurance Plan offers a Long Term Disability (LTD) benefit that provides 24 hour coverage for you and your employees. An income is paid to employees who face lengthy absences from work due to an injury or illness.

If your firm offers LTD benefits, or you are considering adding it to your plan, you should think about tax consequences. If you, the employer, pay any part of the LTD premium, the employee will be expected to pay tax on LTD benefits they receive. As a result, most firms arrange to have employees pay the premium. If you choose this option, make sure your employees are aware that the reason they are paying the full cost for this benefit is to protect them from taxes if they need to use it.

LTD is a benefit many people are not aware of until they need to use it. So take a few moments to review your benefit package and protect your firm, today and in the future.

Pin It

From Our Small Business Blog

Tips on Hiring the Right Employee for your Business

If you’re an owner who would rather operate your business shorthanded than go through the hiring process, you’re not alone. Let’s face it, even though hiring new employees might be one of the most imp

9 Feb, 16

Getting your Business’ Data Analysis Working for You

Data. Thoughts of business data collection and business data analysis often blur vision, imbue panic and dread, trigger a look of confusion. It’s common for business owners to feel uncertainty about w

2 Feb, 16

Subscribe to our Small Business Tips newsletter

Call Us Toll Free 1 877-277-0677

© Chambers of Commerce Group Insurance Plan 2012