Employment Insurance benefits in case of disability are payable for a maximum period of 15 weeks, after the 2 weeks time limit.
Most Long Term Disability Programs have a waiting period of 17 weeks prior to benefits being payable. Usually, benefits are payable until age 65, or for a maximum period of a few years.
Several programs will include a partial definition of disability which will allow disabled employees to return to work on a part time basis and continue to receive disability benefits.
Disability Benefits are taxable if the employer pays all, or part, of the premium. If the employee pays the premium, the benefit is non-taxable.
As a result, careful attention should be given to the allocation of premium between the employees and employer so as to minimize taxable benefits for employees.
Your BFL CANADA consultant has the tools to calculate the contribution formula that best suits the plan sponsor’s needs and minimizes taxable benefits for the employees.