Quebec taxable benefits: 2022 rates
The purpose of this notice is to inform you of the 2022 Quebec taxable benefits calculations for the Public Service Dental Care Plan (PSDCP), and the Pensioners’ Dental Services Plan (PDSP).
Quebec taxable benefits calculations
Employer contributions towards certain group insurance plans are considered a taxable benefit to employees who reside in Quebec. The Ministère du Revenu du Québec publication on Taxable benefits (currently only available in French) provides information on a group insurance plan that provides identical coverage to employees subject to different legislation. To calculate the value of the benefits received by employees, the Employer may use one of two following methods that best reflects the coverage provided to these employees under the plan. The two methods are:
Method A: The value of an employee’s coverage is determined on the basis of actual data for all employees covered under the plan. (standard method)
Method B: The value of an employee’s coverage is determined on the basis of actual data for employees subject only to the Quebec legislation.
Calculation methodology adopted by Treasury Board of Canada Secretariat
Treasury Board of Canada Secretariat (TBS) officials decided to implement Method A as the standard approach.
Each year claims data from four of the five PSDCP components is within the taxable benefits calculation formula to create one rate. The exception is the Canadian Forces Reserve Component (55999). Their eligibility criteria and reservists’ tenure/status has resulted in a separate taxable benefits calculation to be performed based on that group’s claims data.
Purpose of the calculations
The figures calculated by TBS signify the “value” these benefits represent for income tax purposes for residents of Quebec. This amount is not equal to the monthly Employer contribution rate which is an amount calculated for the purpose of Leave Without Pay (LWOP) and participating separate employers.
Beginning January 2022, the following amounts represent the taxable benefit that must be collected and remitted for residents of Quebec:
- PSDCP (Components 55555, 55666, 55777 and 55888): $1,114.22 per annum or $92.85 monthly;
- PSDCP (for Component 55999): $109.51 per annum or $9.13 monthly; and,
- PDSP: $371.44 per annum or $30.95 monthly.
Note: As the Public Service Health Care Plan Employer rates are updated annually, the pay/pension systems already reflect the correct taxable benefit amount for this plan.
Action required
Pay and pension system amendments are required on behalf of residents of Quebec participating in the PSDCP and PDSP.
Additional information
For any questions regarding this notice, contact the Treasury Board of Canada Secretariat, Employee Relations and Total Compensation Sector.
Marie-Chantal Girard
Senior Assistant Deputy Minister
Employee Relations and Total Compensation Sector
Office of the Chief Human Resources Officer
Treasury Board of Canada Secretariat
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