Other Benefits
Flexible Benefits were introduced in recognition of the fact that employees’ needs differ depending on their situation, and in response to requests for additional coverages such as day care, fitness club memberships etc. Certain core benefits may be required (e.g. life insurance, disability) and then there is a set dollar amount per employee to select other options. If employees do not use the full dollar amount to purchase benefits, some companies pay the balance to a cash account for the employee. Other Benefits The perceived value of benefits depends on employees’ needs. Some things...
Read MoreLife Insurance
Employee Group Life Insurance Group Life Insurance provides insurance coverage at affordable group rates. Coverage is typically a multiple of the employee’s base pay, or total direct compensation (salary plus bonus/commission). Dependents’ Life Insurance Basic dependents’ life insurance is typically a set amount such as $10,000 for the spouse and $5,000 for each child. Optional Life Insurance Some insurance companies provide optional life insurance plans for the employee and/or spouse. Premiums are at group rates, and depend on variables such as the insured’s age...
Read MoreHealth and Dental Insurance
Health and dental insurance, while popular with employees, is becoming increasingly expensive, and employers are looking for ways to control costs. Many employers ask employees to share in the cost of premiums (e.g. 50/50; 60/40; 80/20) and some plans pay after the employee has reached a set deductible amount. Goup Insurance covers many of the medical expenses not covered by the provincial health plan (OHIP). The company pays a premium to an insurance company to cover the cost of benefits paid out, plus administrative services. Examples of Group Health Insurance: prescription...
Read MoreDisability Insurance
Short Term Disability Insurance pays a portion of the employee’s salary if (s)he is disabled for a defined length of time (e.g. sixteen weeks). Coverage may be provided through an insurance company, or covered directly by the company. Long Term Disability Insurance pays a portion of the employee’s salary if (s)he is disabled for a long time, or permanently. A typical plan would come into effect after the expiration of a waiting period, which may be covered by the company’s short term disability coverage. If the employee pays the premium, any benefit received is tax-free. If the...
Read MorePensions and Retirement Savings
Pensions and other retirement savings plans are not required in Ontario, but if employers do provide them, most plans must be registered with the Financial Services Commission of Ontario (FSCO). Pension plans are heavily regulated. Legislation and issues around retirement savings plans are complex, and beyond the scope of this site. The following provides some basic information, and useful links to help you do the research necessary before deciding on a retirement savings option. Managing and administering your plans can be outsourced, and some of the links below refer to companies that...
Read MoreEmployee Assistance Plans
EAP benefits are becoming more prevalent, and are valuable in helping employees work through problems at home or at work. Typically, the employer pays the full premium, which is calculated on a per-person per-month basis. Services covered by an EAP may include: legal assistance financial advice child-care and elder-care referrals referrals to paramedical professionals initial consultation with a professional USEFUL LINKS: (for information only: I do not endorse any of these services): Sheppell Canada: http://www.shepell.com/en-ca/ Ceridian Canada:...
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