From optional to crucial business compensation
40 years ago, Employee Benefit plans were a nice thing to have. Today Employee Benefit plans are a crucial component of your business’s compensation package.
Benefit plans help to ensure the health and wellness of your most valuable assets, your employees, while increasing employee involvement, reducing turnover, decreasing absenteeism, improving morale, and increasing happiness and productivity in your workplace.
Employees without a Group Benefit plan in place put more value in Group Benefit coverage than a raise. A recent Healthcare Survey shows that even when offered a substantial amount of money, the majority of employees choose a Group Benefit plan over cash.
Group Benefit plans are a tax-deductible expense for the business and thus are a cost-effective method of compensating and protecting employees. Here are two situations for an employee (we’ll call her Jessica) making $43,000 a year:
Scenario 1
Jessica’s employer pays an extra $1,000 in salary plus $90 for CPP, EI and workers compensation.
Result: Jessica gets $649 after deductions for CPP, EI and federal and provincial taxes.
Scenario 2
Jessica’s employer puts the $1,000 into a health plan. This is a tax-deductible business expense the employer can claim.
Result: Jessica gets $1,000 worth of health coverage, tax-free.
A Wide Variety of Group Benefit Plans
Group Life
Group life insurance is often provided as part of a complete employee benefit package and helps to attract and retain essential staff.
Group Health
Canadians enjoy the benefits of publicly funded health care system, but there are many areas the provincial plan doesn’t cover.
Group Dental
Variety of coverage and co-payment options enable you to customize your plan based on your group’s needs and your budget.
Group Disability Plans
Disability supports employees by ensuring that their income is protected should they suffer an accident or disability.
Employee Assistance
An EAP provides plan members with a variety of resources and support for challenges they will face in their life.
Group Retirement
Group Retirement plans are a high-value benefit that can attract and retain key employees, are easy to set up and launch and are quick and easy to manage.