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I just picked up a new client who has been making payments for her long-term disability coverage through her company. Her previous accountant had not adjusted this, so for the last 4 years it has been deducted as an expense in the company, and no T4 taxable benefit has been taken on the T4.
I'm wondering what the best/easiest way to correct this is. Is it better to go back and adjust the corporate tax returns filed, or adjust her personal tax return for the additional taxable benefit?
Thanks
Louise
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Long Term Disability
MultiQuote#2 Guest_snowplowguy_*
Posted 09 February 2007 - 12:47 AM
lrayner, le Feb 8 2007, 06:27 PM, dit :
I'm wondering what the best/easiest way to correct this is.
Correct what?
In attempting to determine the taxable benefit status of the long term disability premiums paid on behalf of your new client........ perhaps her former accountant asked her the determining question......
"When do you expect yourself to be going on long-term disability"?
Oh..... and just a bit of insurance company trivia....... Long term disability.... in some policies....... is generally limited to death or 2 years...... whichever comes first. It's always wise to read the fine-print. B)
#3
JohnDearin 
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Posted 09 February 2007 - 01:05 PM
Long Term limited to two years? You sure SPG?
My policy, and that of the Federal government, has short term at 2 years, as long as you cannot do your job, and long term, indefinate, as long as you "cannot work", including taking a minimum wage job answering sex lines. (adjusted for CPP disabiliy benefits if entitled)
John Dearin
My policy, and that of the Federal government, has short term at 2 years, as long as you cannot do your job, and long term, indefinate, as long as you "cannot work", including taking a minimum wage job answering sex lines. (adjusted for CPP disabiliy benefits if entitled)
John Dearin
#5
JohnDearin
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Posted 10 February 2007 - 01:50 PM
I Guess you get what you pay for.
John Dearin
John Dearin
#6 Guest_snowplowguy_*
Posted 10 February 2007 - 03:32 PM
JohnDearin, le Feb 10 2007, 08:50 AM, dit :
I Guess you get what you pay for.
I'd guess in the majority of cases it's more likely "you get what someone else pays for"..... with the LTD provided its employees by the Federal Government.... I suppose it would be better rephrased "you get what I pay for". http://i41.photobucket.com/albums/e298/snowplowguy/SMILIES/toothless.gif
You not meaning you John... being self employed I know you pay your own way.... I'm referring to the majority who enjoy employer provided benefits.
#7
JohnDearin
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Posted 10 February 2007 - 07:16 PM
I know what you say SPG. As a federal government employee, my medical and dental benefits were paid by the employer. This included the disability insurance. This of course was negotiated by the union and we received this perk in place of raises. The dental in particular was originally cost shared, and as a part of the freeze and negotiated wage rollbacks back in, god, 1982 ??, it was offered up free. Yep it was the life let me tell you.
But as I posted, the short term package was great, the doctor sent a letter on a regular basis and my cheque would come on a regular basis. I could not perform my duties, so I was covered. But after two years, the short term ended and coverage moved over to long term and that is when it became brutal. If you could do any work, even minimum wage work, sitting at a call centre desk, then you were not covered. If I had known, I would have bought supplemental LTD.
At this time, I do thank you and everyone else for your contributions, it was appreciated. I think I gave back at least what I received :lol:
JOhn Dearin
But as I posted, the short term package was great, the doctor sent a letter on a regular basis and my cheque would come on a regular basis. I could not perform my duties, so I was covered. But after two years, the short term ended and coverage moved over to long term and that is when it became brutal. If you could do any work, even minimum wage work, sitting at a call centre desk, then you were not covered. If I had known, I would have bought supplemental LTD.
At this time, I do thank you and everyone else for your contributions, it was appreciated. I think I gave back at least what I received :lol:
JOhn Dearin
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