Effective July 15, 2012, retail sales tax applies to certain insurance contracts that relate to residents of Manitoba at the rate of 7%.  Group plans such as Basic Life, Optional Life, Dependent Life and AD&D will be impacted.  The University of Manitoba payroll system has been updated to include the required tax.

If you participate in the Dependent Life, Optional Life, and Voluntary AD&D programs you will notice an additional 7% being deducted from your pay for premiums with effective dates on or after July 15, 2012.

The premiums for Basic Life and Basic AD&D are employer paid and the Unversity of Manitoba will remit the retail sales tax.  The retail sales tax paid by the University of Manitoba will be reported as a taxable benefit on the T4 under Box 40.