DFG Blog - Dehoney Financial Group

Government of Saskatchewan imposes PST on insurance premiums effective August 1, 2017

12:05 pm
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The Government of Saskatchewan will impose a 6% PST on all insurance premiums with an effective date on or after August 1, 2017. The original effective date for the application of the Provincial Sales Tax (PST) was July 1, 2017, but was extended to August 1, 2017, to provide additional time for implementation. The PST of 6 per cent impacts employers with employees in Saskatchewan and applies to the following:

Self-insured group benefit arrangements, also known as Administrative Services Only (ASO) arrangements
New individual permanent life insurance policies, including whole and universal life insurance, effective after […]

OHIP+ is good news for Ontario-based businesses arriving January 1, 2018

11:42 am
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Given the rising cost of specialty prescription drugs and increased use of paramedicals, Ontario businesses who sponsor an employee benefit plan are finally receiving some good news. With the April 27, 2017, announcement by Ontario’s Ministry of Finance, introducing free prescription drug coverage (OHIP+) for everyone aged 24 and under, a plan sponsor’s bottom line will improve.

How will plan sponsors benefit?

A lower number of claims – although children comprise a relatively low percentage of the overall drug spend, drug claims will drop. ClaimSecure recently analyzed the claims data of […]

Despite taxation changes in 2017, life insurance products remain competitive.

In a previous article on the changes to the taxation of life insurance, we speculated on what insurers might do to their products to keep them competitive in the 2017 tax environment. And while the changes were significant, we had every confidence in the actuaries that they would develop their products to provide value to clients.

We have now had a chance to look at the new 2017 products and, after running our analysis, we can say that the results are encouraging.

Our Analysis – Universal Life Insurance

Our experts chose a 2016 level-cost, universal life insurance product […]

New: PST to be charged on insurance premiums in Saskatchewan

3:14 pm
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In an Information Notice dated March 22, 2017, issued by the Government of Saskatchewan, the government announced both an increase and expansion of the Provincial Sales Tax (PST) from 5% to 6% effective March 23, 2017.  Read the notice here.

Of significance to employers with employees who reside in Saskatchewan is the expansion of the PST to include insurance premiums. This new tax applies to all insurance premiums that are due on or after July 1, 2017, regardless of when the policy was issued. This includes:

Life Insurance
Accidental Death & Dismemberment Insurance
Extended […]