Manitoba RST to apply on certain group insurance premiums

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For plan sponsors who receive a billing statement or payroll files from Sun Life, please read the following information on how the Manitoba Retail Sales Tax (RST) will be incorporated.  As Sun Life reported to you earlier this year, effective July 15, 2012 the Manitoba Retail Sales Tax (RST) rate of 7% will apply on group insurance premiums for the following coverage:          

  • life
  • disability (short-term and long-term)
  • critical illness
  • accidental death & dismemberment
  • all creditor insurance

Extended health care and dental benefit coverage are exempt from the Manitoba RST as well as administration services only (ASO) arrangements. 

Insurance premium billing statements

Effective with your January 2013 premium statement, the Manitoba RST will be included for active plan members who reside in Manitoba.   Included on this billing statement will be any retroactive Manitoba RST adjustments for premiums payable on or after August 1, 2012 –  the first premium due date after the effective date of the legislation – for these active plan members. 

Also effective January 2013, payroll related information sent by Sun Life will include the Manitoba RST.  Please ensure plan member information on file with Sun Life, such as the province of work, or province of residence, is current.  The sales taxes calculated on group insurance premiums are based on this information.

Manitoba RST with premium payments

As an interim measure, Sun Life is making RST payments to the province of Manitoba on your behalf based on the estimated tax liability until our premium statements reflect the new Manitoba RST.  However, if you would like to include an estimated Manitoba RST amount with your monthly premium payments in advance of the above implementation date, you can. 

Note: Any estimated Manitoba RST payment received from our plan sponsors that are clearly identified as such when received, will be credited on the January 2013 premiums statements. 

Questions?

Please contact your Client Service Administrator at 1-877-786-7227.