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Talking About Financial Matters That Affect You and Your Organization
Benefits Cost Sharing – Box 85
Dec 19th, 2019
Organizations who share the cost of the benefit plan with
plan members should be aware of Box 85 on the member T4. The portion deducted from employees pay for
Health and Dental benefits belong in this section of their T4. Here is the wording from CRA’s
website,
If you make contributions to a private health services plan (such as
medical or dental plans) for employees, there is no taxable benefit to the
employees.
Note
Employee-paid premiums to a private health services
plan are considered qualifying medical expenses and can be claimed by the
employee on their income tax and benefit return.
Include the amount that the employee paid on a T4 slip in the
"Other information" area under code 85. The use of
code 85 is optional. If you do not enter code 85,
we may ask the employee to provide supporting documents.
Use the T4A slip to report these amounts for former employees or retired
employees. Enter the amount under code 135, "Recipient-paid
premiums for private health services plans," in the "Other
information" area at the bottom of the T4A slip.
For more information on private health services plans, go to New position on private health services plans -
Questions and answers and see
Interpretation Bulletin IT 339, Meaning of 'private health services plan’ (1988
and subsequent taxation years).
Payroll deductions
Do not deduct CPP contributions, EI premiums, or income tax from benefits you provide to employees under private health services plans.