Employee Benefits are an element in the total compensation plan established by employers for their employees. It is a form of "indirect compensation" whereas salaries and bonuses would be "direct compensation".
The Employee Benefit Plan can be broken down
into either "risk" or "convenience" groupings. A "risk" benefit
- such as Death, Disability, Illness or Extended Health Care -
cannot be anticipated. On the other hand, "convenience" benefits
- including Dental Care, Vision Care, certain Paramedical
Services such as Massage Therapy, Chiropractic Treatment and
Physiotherapy - can be anticipated and planned for the coming
benefit year.
By offering Employee Benefits, employers can typically provide their employees with these services at a greatly reduced cost to them. We'd be happy to discuss associated costs and any tax implications of offering Employee Benefits to your employees.......just call us!
An Employee Pension Plan can be either “contributory” or “non-contributory”. A “contributory” plan means that both the plan member (employee) and the employer make contributions. Conversely, a “non-contributory” plan requires that only the employer make the contributions.
There most common of these plans are the “Defined Benefit Plan” and the “Defined Contribution Plan”.
The “Defined Benefit Plan” benefits the employee at retirement by issuing a prescribed amount which is determined using a formula that combines such factors as the employee’s earnings and years of service. The “Defined Contribution Plan” (or “money purchase plan”) consists of contributions going into an investment pool. This plan uses the investment performance of the pool itself. Upon retirement, the money in this account is used to purchase an annuity or other similar financial vehicle for the retiring employee.
Please contact our office to see which type of Plan is best suited for your company!
Millions of Canadians are NOT fully covered by an Employee Health Plan! They are unknowingly vulnerable to healthcare expenses NOT COVERED by a Government Health Plan, such as Alberta Health Care.
For only a few dollars per day, an Individual Health and Dental Plan can offer a variety of benefits that are not covered elsewhere. These benefits include: Prescription Drugs (with benefit card); Basic and Major Dental Care; Paramedical Services; Emergency Services (ambulance, hospitalization, etc.); Accidental Death & Dismemberment; Vision Care; Basic Travel Coverage.
The cost for each Plan is determined by factors such as: Province of Residence; Single, Couple or Family; Age of Applicant(s); Benefits Selected; Percentage of Coverage.
There IS a plan for every circumstance … call us today!
A Private Health Service Plan (PHSP) is a “Pay As You Go” type of plan which involves a small start-up fee and then an administration fee for each subsequent transaction.
The PHSP can be set up as a stand-alone plan for Small Businesses OR as a complement to an existing Employee Benefit Plan. When part of the Employee Benefit Plan, you will typically see convenience items as well as non-reimbursable items used.
A PHSP can be set up in several ways:
- Annual Dollar Limits
- Percentage of Annual Income
- Different Levels for Different Classes of Employees
- Different Levels for Business Owners
Ultimately, it is a great way to offer benefits to your employees while controlling your own costs from year-to-year. Call our office to find out more!
A Disability Buy-Sell program is designed to provide funds to facilitate a “buy-sell agreement” if a business owner is totally disabled. It helps protect your capital and prevent a drain on the company’s resources.
A Benefit Payment Option is used and can be set up on either a monthly payment basis, a one-time lump sum payment, or a combination of both. The variety of “start dates” (when the benefit becomes payable) range from 1 to 3 years.
In many instances, these plans can be converted to a Personal Disability Plan if:
- The ownership interest in the business becomes 90% or more
- The policy terminates because you cease to work full-time for the business and/or;
- You are working full-time for another business
The Disability Buy-Sell strategy is GREATLY UNDER-UTILIZED in many businesses! We would be happy to assess your situation! Call us for more information today!
If you have any questions or require more information,
please do not hesitate to contact us at 280-1470.
