In Canada, it is usually recommended that employees pay for their own group disability insurance. The reason is that if the employer pays for that portion of the group premium then the benefit (disability income) is taxable to the employee. The usual scenario has the employer and employee each paying 50% of the total group premium.
Under certain circumstances. it possible to structure individual policies where the company pays for the entire premium and deducts it as an expense. In this case the benefit (disability income) is taxable to the employee should he/she become disabled. The amount of income they could qualify for is increased to recognize the income would be taxable. The payment of the premium is not considered to be taxable benefit since the disability income is taxable.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
How much do employers pay for disability insurance? Well it depends on what you're thinking disability insurance is. If you are thinking about workman's compensation insurance for on the job injuries, it usually is a factor of the job and number of hours worked and claims history both for the specific occupation and the claims of the business.
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Under certain circumstances. it possible to structure individual policies where the company pays for the entire premium and deducts it as an expense. In this case the benefit (disability income) is taxable to the employee should he/she become disabled. The amount of income they could qualify for is increased to recognize the income would be taxable. The payment of the premium is not considered to be taxable benefit since the disability income is taxable.
If you have further questions, or feel that I could be of assistance, please do not hesitate to contact me.
If you would like to work with a local life insurance broker, you could start with a Google search. For example, if you search for: life insurance broker Halifax or life insurance agent Halifax, my name, along with several others, will come up. You can use the same method to find a life insurance broker in your community.