Author Topic: Taxability of benefits after mid-year move to Quebec - help needed  (Read 1655 times)

meghan88

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I moved provinces at the end of June, 2019.  I just got this from my employer - an Ontario company with no offices in QC (I work remotely):

Taxability of benefits differs between Canada Revenue Agency (CRA) and Revenue Québec (RQ).  Employer‐paid insurance premiums for health and dental are not taxable federally and are therefore not included in Box 14 of your T4 information slip.

However, these benefits are considered taxable benefits provincially in Québec, and as an employee of [Company], it is your obligation to self‐report these benefits on your Québec income tax return.

They also sent me a table to show me what the monthly amounts are for health and dental, as well as columns for Ontario and Quebec.  Looks like this (I didn't include exact amounts below):

                                          Monthly             ON                    QC
Health 2019                           196               1,274               1,179
Dental 2019                             97                 632                   585

Are there any tax-savvy Canadians out there who can tell me what I need to do on my tax return?

If I use Simpletax or another online program, I'm not sure how or where to self-report?

UpNAtom

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Re: Taxability of benefits after mid-year move to Quebec - help needed
« Reply #1 on: December 13, 2019, 02:12:59 PM »
I know uFile usually has an option to add a page for "information not on a slip" or that they specifically point out what you can include ("taxable benefits").  You'll have to double-check, but I *think* it would likely fall under Box J - Regime Prive d'assurance maladie.  Hopefully that is a little helpful to find your way through that particular maze.

Side note: If you haven't been putting aside money for taxes, you could start now (or your income is high enough to cash flow it or low enough that the amount owing will be low).  The taxes owed in QC will be for the full year even if you earned money Jan-May in a different province.

50k taxable income in ON = 11k owed (18.9k on 75k); in QC = 13.2k (22.9k on 75k)

meghan88

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Re: Taxability of benefits after mid-year move to Quebec - help needed
« Reply #2 on: December 13, 2019, 05:11:34 PM »
Thank you!! That is helpful.  I've been getting taxes deducted at source all along.  I think it's just the taxable benefits that will have to be self-reported.  I am more concerned about doing my returns properly, than worrying about what to budget.  I usually get a refund from maxing out my RRSP so hopefully that will more than cover it.

UpNAtom

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Re: Taxability of benefits after mid-year move to Quebec - help needed
« Reply #3 on: December 16, 2019, 09:44:42 AM »
I've been getting taxes deducted at source all along.
As long as it is QC taxes since not all companies will do that or they "forget" (since it complicates their reporting).

GettingThere

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Re: Taxability of benefits after mid-year move to Quebec - help needed
« Reply #4 on: January 02, 2020, 11:22:07 AM »
Hello

Since you are a resident of Qbc  on Dec 31, your 2019 income will be 100% taxed as a Quebec resident (not good news for you).

The taxable benefit for heatlth insurance is indeed taxable in Quebec but not on the federal level. For Quebecers in this situation, they will normally have a box A (income)  on their provincial RL1 higher than their T4 federal income box 14.  The difference is in box J on the RL1, which represents the employer paid health insurance.

I am not advocating this, but if there are no slips , the likelihood of Revenu Quebec noticing this mistakes is slim to none. But technically you have to report it.

What you do in your tax software is you fill a new T4 form. You put 0 in box 14, xx$ in box A (RL1) and xx$ in box J. xx being the amount paid by your employer for health insurance. normally your software will only add this revenue on your Quebec tax return. You can verifiy this in the taxable income summary before you submit.