S7 for medical and dental payroll deductions

[LMum]

Hi all, I haven't been around a while, finalized divorce last year. But my ex and I don't agree on an S7 expense.

He pays every paycheck towards his medical and dental benefits. I have them as well but 100 percent paid by my employer. So at the end of May I have to reimburse him for my percentage of the S7 expense for his payroll deduction. His benefit is family coverage that covers him, my child and his partner, noting there are three of them on the plan.

He has calculated it by the difference between single and family amount. For example, if single was 20, and family was 50, then he thinks I pay my percentage of the difference of the 2. which is $30, times 26 pays = $780. My percentage is 70 so he is expecting me to pay him $546.

But the way that I read it, I only pay what attributes to the child and therefore should not be paying for all three members. Same numbers above. I took the family coverage of 50, times 26 pay = $1300 divided by 3 is $433 and my percentage of 70 percent is $303.

Does anyone know the correct way to calculate this?

 

[Tayken]

You shouldn't be paying each other's benefits. The only time S7 should kick in is when benefits are needed and do not cover the entire cost of the expense. Then you only settle on the difference not covered by the parents plans based on S7 and parent's income split.

There are many situations where you can have 3-4 private plans covering children as both parents have new partners who also have plans. You can put them all on the plans and you can make the claim against each plan until there is 0$ payable.

 

[LMum]

You shouldn't be paying each other's benefits. The only time S7 should kick in is when benefits are needed and do not cover the entire cost of the expense. Then you only settle on the difference not covered by the parents plans based on S7 and parent's income split.

There are many situations where you can have 3-4 private plans covering children as both parents have new partners who also have plans. You can put them all on the plans and you can make the claim against each plan until there is 0$ payable.

It actually is a part of the S7 Guidelines, see below, And it's in our agreement. It's just not clear on how it calculated.

• the portion of your medical and dental insurance premiums that provides coverage for your child

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[Challenger]

Tayken, with all due respect, I think insurance premium is an expense, and even CRA treats it as such. The other point fighting over few hundred or even a thousand dollars a year has zero sense, as even single letter from lawyer would cost you more.

 

[LMum]

Tayken, with all due respect, I think insurance premium is an expense, and even CRA treats it as such. The other point fighting over few hundred or even a thousand dollars a year has zero sense, as even single letter from lawyer would cost you more.

Who said anything about fighting? I just asking if anyone knows how it's calculated. I would have hoped that someone had experience this before, as it is in the guidelines and my lawyer (who was very good) informed me it was an S7 expense. I have no intentions of asking my lawyer, whom I have no longer retained, to send a letter. Do you know how its calculated?

 

[LMum]

Tayken, with all due respect, I think insurance premium is an expense, and even CRA treats it as such. The other point fighting over few hundred or even a thousand dollars a year has zero sense, as even single letter from lawyer would cost you more.

Who said anything about fighting? I was just asking if anyone knows how it's calculated. I would have hoped that someone had experience this before, as it is in the guidelines and my lawyer (who was very good) informed me it was an S7 expense. I have no intentions of asking my lawyer, whom I have no longer retained, to send a letter. Do you know how its calculated?

 

[Challenger]

Who said anything about fighting? I was just asking if anyone knows how it's calculated. I would have hoped that someone had experience this before, as it is in the guidelines and my lawyer (who was very good) informed me it was an S7 expense. I have no intentions of asking my lawyer, whom I have no longer retained, to send a letter. Do you know how its calculated?

I am not a lawyer, but to me the common sense is to take a difference of what you pay for sole vs family plan, instead of dividing it by 3, at least that’s what I saw people do out of court - doesn’t mean it is correct, but that’s what they do.

 

[LMum]

I am not a lawyer, but to me the common sense is to take a difference of what you pay for sole vs family plan, instead of dividing it by 3, at least that’s what I saw people do out of court - doesn’t mean it is correct, but that’s what they do.

Thank you. That is what my ex has suggested. Although it's only a difference of $300, I'll just pay it.