Private health services plan premiums

If you make contributions to a private health services plan (such as medical or dental plans) for employees, there is no taxable benefit for the employees.

Include the amounts that the employee paid on a T4 slip in the "Other information" area under code 85. The use of code 85 is optional. If you do not enter code 85, the CRA may ask the employee to provide supporting documents.

Use the T4A slip to report these amounts for former employees or retired employees. Enter the amount under code 135, "Recipient-paid premiums for private health services plans," in the "Other information" area at the bottom of the T4A slip.

For more information on private health services plans, go to Private Health Services Plan and see Archived Interpretation Bulletin IT-339R, Meaning of 'private health services plan' (1988 and subsequent taxation years).

Payroll deductions

Do not deduct CPP contributions, EI premiums, or income tax from benefits you provide to employees under private health services plans.

Forms and publications

• Income Tax Folio S2-F1-C1, Health and Welfare Trusts
• Archived Interpretation Bulletin IT-339R, Meaning of 'private health services plan' (1988 and subsequent taxation years)
• Income Tax Folio S2-F3-C2, Benefits and Allowances Received from Employment