Long-term disability benefits are often set at 66 and 2/3 percent of your regular salary under the assumption they will be received tax-free.
If your employer pays for your short-term or long-term disability premiums, either reimburse your employer for the premiums, or have the premiums treated as a taxable benefit on your annual T4 slip. This prevents your disability benefits from being taxable if you make a claim.
You may want to restructure your compensation package so that you pay your own disability premiums, but your employer pays for other benefits such as medical and dental coverage.
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