Claims paid through a Dental Plan are Tax Free!
No Dental Plan
Salary $1438
Taxes (30.5%)* ($438)
Net for Dental Claim $1000
Vs.
Dental Plan
Dental Claim (non-taxable) $1000
Taxes (0%) $0.00
Net for Dental Claim $1000
Tax Cost Difference $438
*income of $62,000 average BC combined provincial and federal tax rate 25.22% ($12,485), Employment Insurance Employee and Employer Contribution 4.15% to $43,000 ($1784), Canadian Pension Plan Employee and Employer contribution 9.9% of $47,200, ($4672). Total taxes and deductions, ($12,485 + $1,784 + $4,672 = $18,941) effective average tax rate 30.5%
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