How much are applicable taxes?

We all pay taxes, though taxes on group benefits vary by province and feature.

Taxes by Feature

Each province has its own set of rules regarding which taxes apply on group benefits plans, and some provinces have several layers of taxes on:

• Net HSA contributions
• Admin fees on EHB and HSA (including advisor compensation)
• Insured benefit premiums (POM, Excess Medical)
• EFAP and other service fee-based benefit features
• Claims processing fees

Which province is used to calculate taxes 

Taxes on group benefits are based on the province where the employees are paid from rather than where they reside. For example, if an employee lives in BC but is paid through an Ontario office, Ontario taxes would apply. 

Tax people use the phrase "province of supply" to describe the way we apply taxes to the paying Plan Sponsor company.

Tax Application by Province

Example - Taxes Applied to a Group HSA

An HSA Rollback, Classic, or Rollover with monthly net contributions of $500 would have a total monthly cost of $607.50 in Ontario and $552.50 in Alberta.

Note taxes on HSA Enhanced and Enhanced Health Blends reserves and expenses reimbursed are added if applicable, and there are no applicable taxes on contributions or claims for our Wellness features.