Our voices were heard! On February 1st, 2017 Prime Minister Trudeau announced that the Federal government has no plans to implement a tax on employee health and dental plans. This is in part thanks to the over 80,000 Canadians that shared their concerns through social media and letters to elected Members of Parliament.
As we discussed in our last newsletter, a potential tax would create a wide array of unintended consequences. After a similar tax was introduced in Quebec in 1993, 20% of employers stopped offering plans leaving employees to purchase plans themselves. Workplace insurance fell by one-fifth and was not offset by a corresponding increase in individually purchased insurance.
Read more industry reaction to the news here.
Now, employer sponsored health and dental plans remain one of the last true tax-free benefits an employer can offer their employees.
3 Reasons to Offer Employee Benefits:
- Savings for both the employer and employees
Offering a group benefits plan is advantageous to both business owners and employees, who will be able to enroll in a benefits plan for less money than if they were to buy individual private plans. Group benefits also provide both business owners and employees access to coverage that might not be available, or might be too expensive, as an individual. Corporations also benefit from a tax advantage, deducting the costs associated with employee health benefits.
- Increase a company’s appeal
Next to salary, a competitive benefits package is the most important tool an employer can use to attract and retain top talent. Offering a competitive benefits plan demonstrates that the business owner believes in their company enough to invest in it’s employees and proves that the company is stable, which can help attract high-quality employees.
- Boost morale, engagement and productivity
Offering health and dental benefits increases the likelihood that staff will have regular checkups and take necessary preventative medical actions. Benefits will ensure employees and their dependents are able to pay for the medical expenses they need to stay healthy and productive.
To find out more about Benecaid’s group benefits plans, contact your Benecaid Executive Benefits Consultant or email us at advisors@benecaid.com.
