Group term life insurance policiesThis taxable benefit must be reported in Box 40 of the T4 slip for active employees or in Box 119 of a T4A slip for retirees. However, for residents of Quebec, this amount should be reported in Box L of the RL -1 as an amount of taxable benefit included in box A and if you are retired, the amount is also included in Box 211.
To enter this taxable benefit for "ACTIVE EMPLOYEES", follow this procedure:
1. On the "Left-side menu on the Interview tab", select "T4 and employment income".
2. On the screen to the right, select the line that corresponds to your situation, either "T4 income earned outside Quebec" or "T4 and RL-1 (Relevé 1) income earned in Quebec".
3. On the page that appears, enter the amount from "Box 14" as well as the amount from "Box 40" of the T4 slip. For Quebec residents, also enter the amount from "Box A" as well as the amount from "Box L" of the RL-1 slip.
If you are a "RETIRED EMPLOYEE", enter this benefit amount by following this procedure:
If you are not a Quebec resident:
1. On the "Left-side menu on the Interview tab", select "Pension income, T4A".
2. On the screen to the right, choose the line "T4A - Pension, retirement, annuity, and other income".
3. On the page that appears, enter the amounts in Boxes 016 and 022. Then, go to the "Other information (click on the triangle to see the list of choices)"drop-down menu and select "(119) Premiums paid to a group term life ins. plan". Enter the amount from box 119 of your T4A slip.
If you are a Quebec resident:
1. On the "Left-side menu on the Interview tab", select "Pension income, T4A," and on the screen to your right, choose "T4A - Pension income (RL-2) with taxable benefits (RL-1)".
2. On the "T4A - Pension Income and Relevé 2" section, enter the amounts from boxes 016 and 022.
For box 119, go to the "Other information" section and to the line "Other information (click on the triangle to see the list of choices)" and choose the option "(119) Premiums paid to a group term life insurance plan".
3. To enter the amounts from boxes A, J, L and 211 of the Relevé 1 go to "Relevé 1 - Taxable Benefits" and enter the amounts that appear on your Relevé 1.
The amount from box 119 of your T4A slip will be reported by the program to line 10400 of the federal return, while the amount from Box L of the RL-1 will be reported to line 101 of the Quebec return.
For more information about this topic, please consult the following links:
For the CRA:
https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/group-term-life-insurance-policies-employer-paid-premiums.htmlFor Revenu Québec:
https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/in-253-v/ID: 20191113140920NA.xml
Webpage: KPA310-20191113140920NA.htm