Quebec Taxable Benefits - 2012 Rates
To: Administrators of Public Service Pay and Pension Systems; Participating Employers
Treasury Board Secretariat (TBS) is responsible for calculating, on an annual basis, the Quebec Taxable Benefit for the Public Service Health Care Plan (PSHCP), Pensioners' Dental Services Plan (PDSP), and the Public Service Dental Care Plan (PSDCP). The purpose of this notice is to inform you of the Quebec Taxable Benefits rates for 2012.
How is the Quebec Taxable Benefit Calculated?
Since 1993, Employer contributions towards certain group insurance plans are considered as taxable benefits to employees who reside in Quebec. According to the Ministère du Revenu du Québec publication on Taxable Benefits, "Where a group insurance plan provides identical coverage to employees subject to different legislation (that is, Quebec legislation and legislation in effect elsewhere), the Employer may use one of two methods to calculate the value of benefits received by employees. The Employer must choose the method that best reflects the coverage provided to these employees under the plan." The two methods are:
"Method A: The amount representing the value of an employee's coverage is determined on the basis of actual data for all employees covered under the plan. (Method A is the standard method)"
"Method B: The amount representing the value of an employee's coverage is determined on the basis of the actual data for the employees subject to the Quebec legislation."
Calculation Methodology adopted by TBS
Following a review of the Quebec legislation, TBS officials determined in 2003 that a standard or uniform approach would be implemented using Method A above. With one exception, for all components of the dental plan, one rate is calculated each year and entered in the pay/pension systems. The rate is determined on the most recent actual cost data at a national level. No attempt is made to calculate taxable benefits on a provincial basis or on family status. The value is based on data from all members. The only exception is with respect to the Canadian Forces Reserve Component, given the particular eligibility criteria of that group and reservists' tenure/status.
What is the Purpose of the Calculations?
These calculations serve a dual purpose, as described below.
Primarily, the figures calculated by TBS represent the "value" of these benefits for income tax purposes for residents of Quebec.
- The PSDCP and PDSP figures provided below must be included as appropriate on the Relevé 1 forms for 2012, which will be issued to Quebec residents early in 2013.
- The amount of the taxable benefit for the PSHCP is extracted from the relevant pay/pension system.
The figures calculated by TBS are also used to estimate, for the upcoming year, the amount of taxable benefit these Plans will represent. These amounts, when added to income (pay or pension) are used to determine the level of income tax that should be withheld in the coming year. The monthly figures provided below will be programmed into the pay/pension systems for this purpose for 2012.
PSDCP (for Groups 55555, 55666, 55777 and 55888): $829.74 per annum or $69.15 monthly.
PSDCP (for Group 55999): $161.04 per annum or $13.42 monthly.
PDSP: $327.52 per annum or $27.29 per month.
PSHCP: The taxable benefit for PSHCP is to be obtained from your respective pay/pension system, ie: the Employer's share.
Departmental pay and pension system amendments are required.
Should you have any questions regarding this notice, please contact Treasury Board of Canada Secretariat, Pensions and Benefits Sector at Contact Pensions and Benefits Sector by E-mail : email@example.com.
Assistant Deputy Minister
Pensions and Benefits Sector
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