PROVINCIAL SALES TAX ON GROUP INSURANCE CONTRIBUTIONS

July 25th, 2012

Effective July 15, 2012, all group insurance contributions are subject to the 7% Manitoba Retail Sales Tax. This requirement was passed in the 2012 Manitoba Budget.

You will be required to pay the sales tax on basic life insurance, voluntary life insurance, family life insurance and voluntary AD&D insurance contributions.

Your employer is required to pay the tax on their share of the basic life insurance contributions.