Tax rates and the applicable period

Below is an outline of the premium tax and compensation tax rates, and their applicable period.

Quebec tax rates

From December 3, 2014 to March 31, 2022

Beginning April 1, 2022

Premium tax

3.00%

3.00%

Compensation tax

0.48%

0.30%

Total tax rate

3.48%

3.30%

What this means for plan sponsors

Below is a summary of how we’ll process new and existing business.

Group Insurance Premium Rates
  • Sun Life will ensure the premium rates for renewals and quotes will reflect the change in premium tax.
ASO Statements and Invoices
  • We’ll ensure that the April 2022 ASO invoices, issued in May, show the reduced combined premium tax rate.
  • We’ll display the applicable tax factors on the Tax Calculation Attachment of the ASO invoice.
  • We’ll include the attached invoice notice with the April 2022 ASO invoices as a reminder.
Refund Financial Statements
  • We’ll include a prorated tax rate in sponsors’ Refund Financial Statements, after April 2022. This will reflect the tax rates, effective during the financial period.

Client communication

  • We’ll send this Focus Update to plan sponsors on July 8.

Questions? We’re here to help.

Please contact your Sun Life Group Benefits representative.