Manitoba provincial retail sales tax rate increase announced

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In its Budget 2013, the Manitoba government announced that the provincial retail sales tax (RST) will increase from 7% to 8%, effective July 1, 2013. 

As a reminder, since July 2012 the Manitoba RST applies on group insurance premiums for plan members who reside in Manitoba on the following coverage:

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

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

Sun Life has implemented the following for our group plan sponsors:

For plan sponsors who prepare their billing statement related to the premium payments they send to Sun Life

  1. For premiums that are due
    1. on or before June 30, 2013, the 7% Manitoba RST is payable
    2. on or after July 1, 2013, the 8% Manitoba RST is payable
  2. Plan Sponsors will be required to clearly identify on the billing statement the amount of Manitoba RST that is included with the payment.
  3. Sun Life will remit the indicated RST amount to Manitoba as per the usual process.

For plan sponsors who receive a billing statement from Sun Life

  1. For premiums that are due
    1. on or before June 30, 2013, the 7% Manitoba RST is payable
    2. on or after July 1, 2013, the 8% Manitoba RST is payable
  2. August 2013 premium statements will include the Manitoba sales tax rate increase for active plan members who reside in Manitoba.   Included on the August billing statement will be any retroactive Manitoba RST adjustments for premiums payable on or after July 1, 2013 –  the first premium due date after the effective date of the legislation – for these active plan members
  3. Sun Life will remit the indicated RST amount to Manitoba as per the usual process.

For more information about the budget, you can visit the Government of Manitoba website.

Questions?

Contact your Sun Life Financial group benefits representative.