Group Insurance

Health and Welfare Trust

Health and welfare trusts are defined as an employer-funded trust established to provide certain health and welfare benefits for employees; a group accident or sickness plan, private health services plan, group term life insurance policy, or any combination of the benefits mentioned above. Employer contributions are deductible but not included in employees' income. Plan benefits other than for wage loss replacement and plan-paid premiums for group term life insurance are not taxable.

Health and welfare trusts are defined in more detail in IT-85R2 on the CRA website.