Posté le 15 February 2017 - Dans : What's New
Preparing your T4 and RL-1 headache free? It’s simple with Alias !
TAX CREDIT FOR MEDICAL EXPENSES
BOX 85 OT THE T4 AND BOX 235 OF THE RL-1
As an employer, it’s very likely that you’ll get questions from at least one of your employees about the amount they can include for medical expenses on their provincial and federal tax returns. It’s your responsibility to provide them with this information. Your insurer does not provide the information your employee is looking for. The employer must make a calculation and send the results to the employee in writing.
Thanks to Alias, our group insurance management program, we can easily provide you with this information.
Do you already make two deductions from your employees’ pay? Excellent!
Your two deductions should be:
- A deduction for the HEALTH/DENTAL portion, for which the annual total should be reported in box 235 of the RL-1 and box 85 of the T4.
- A deduction for the OTHER BENEFITS portion, for which the annual total does not need to be reported on any slip.
Do you deduct just one overall amount from your employees’ pay for group insurance? We recommend you split that amount into two deductions, as indicated on our payroll deductions report. At the end of the year, it will be easy for you to write the correct amounts in box 235 of the RL-1 and box 85 of the T4.
By clicking here, we show an example of the payroll deductions report. In this example, you would make two deductions from the total payroll contribution of $51.03—a first deduction of $18.64 for health/dental and a second of $32.39 for other benefits.
This way, you fulfill your obligation and your employee won’t have to come ask you about it!
It’s tax season and the beginning of the year—take advantage of this opportunity to make these adjustments now. You’ll have much less work this time next year!
Please contact your coordinator if you would like a complete report for all your employees; she will be happy to send you one.