IAM 5.2.13

Section: DENTAL CARE PLAN (DCP) - ENROLMENT IN THE PLAN

Subsection: TAXABLE CONTRIBUTIONS

RULE

Taxable Benefits

| In accordance with Quebec tax law, contributions paid by an employer towards the Dental Care Plan (DCP) are considered taxable benefits applicable to employees who reside in Quebec. The monthly taxable benefit for 2011 is $65.53.

The additional taxable benefit applicable to Quebec residents will be shown on the Relevé 1 form given to the employee at the end of the tax (calendar) year.

BACKGROUND

The monthly amounts of taxable benefits for previous years were the following:

• | $64.74 -- January 1, 2010;
• $61.40 -- January 1, 2009;
• $59.48 -- January 1, 2008;
• $56.76 -- January 1, 2007;
• $54.35 -- January 1, 2006;
• $52.69 -- January 1, 2005;
• $51.35 -- January 1, 2004;
• $49.97 -- January 1, 2003;
• $46.18 -- January 1, 2002;
• $45.62 -- January 1, 2001;
• $47.10 -- January 1, 2000;
• $46.55 -- January 1, 1999;
• $46.06 -- January 1, 1998;
• $43.54 -- January 1, 1997;
• $39.89 -- January 1, 1996;
• $37.08 -- January 1, 1995;
• $36.66 -- January 1, 1994;
• $37.15 -- June 1, 1993.

PROCEDURES

Compensation advisors must input the appropriate pay transaction in the Regional Pay System (RPS) in order to commence the accumulation of the taxable benefit for Quebec residents who are members of the Plan.

Provincial Sales Tax: Ontario and Quebec

Since February 1, 1994, members on leave without pay (LWOP) who are paying contributions in advance to maintain their Plan are to include the sales tax (8% in Ontario and 9% in Quebec) in their payment. Please refer to the Insurance Administration Manual (IAM) Section IAM 5.5.2.

Compensation advisors must insure that all DCP remittance payments for residents of both Quebec and Ontario include the appropriate sales tax.

Compensation advisors must ensure that members are made aware of the taxable benefits and of the sales tax implications.

REFERENCES

Compensation Directive 1994-014, dated April 7, 1994 -- Quebec Taxable Benefits

Treasury Board Secretariat (TBS) correspondence dated November 18, 2002.

Last Update: December 2010

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