A healthy choice for your employees

The road to wellness is paved with many expenses. From prescription drugs to emergency dental procedures, the costs can add up quickly. Thankfully, there is a solution available, and it can easily be added to an employee benefits package.

A group health care spending account is a cost-effective way to provide medical and dental benefits to your employees. The plan benefits both employees and employers, as the employees receive the benefits tax-free while the company can claim them as a tax-deductible expense. Employees also have the flexibility to choose how, where and when they use the allowance for their benefits.

Best of all, the benefits received by the employees through the plan are free of additional fees, such as co-pays, deductibles, premiums and claims processing fees.

Table of Contents

What is a Health Care Spending Account in Canada?

How does a Health Care Spending Account work?

Does the number of employees in my business impact how the plan functions?

Where can I get a HCSA benefits for my employees?

What is a Health Care Spending Account in Canada?

According to Wikipedia,

A Health Care Spending Account (or Health Spending Account or Healthcare Spending Account) is a type of flexible employee benefits program in Canada that aims to provide more flexibility than a traditional health plan. As a supplemental program, it covers items that are not normally part of the traditional plan.

It is an individual employee account that provides reimbursement for eligible health care expenses or other benefits that are not covered under provincial health insurance plans or other benefit plans sponsored by the employer. A Health Spending Account can be implemented on a stand-alone basis within a traditional benefits plan or part of a flexible benefits plan.

Generally, these plans include a fixed amount per employee available to be claimed, which makes budgeting for them easier for employers. Expenses that can be claimed against an HCSA are regulated by the Canada Revenue Agency.

How does a Health Care Spending Account work?

An HCSA work by providing your staff with compensation for various eligible medical expenses. These include, but are not limited to:

• Cosmetic surgical procedures
• At-home care (when required)
• Over-the-counter prescription drugs
• Modifications to your home for medical purposes

Your employees can also use their group HCSA benefits to cover other medical-related expenses and services that either exceed the maximum amount of coverage provided or are not offered by certain plans. Examples include:

• Prescription drugs
• Prescription glasses and contact lenses
• Paramedical services, such as massage therapy or physiotherapy
• Dental services and expenses not included in traditional dental plans, such as bridges and crowns

Does the number of employees in my business impact how the plan functions?

Yes, it does. In a business with at least one paid employee, the group HCSA is often included as part of an employee benefits package. While the employees determine how they use their health care allowance, the employer determines the amount of the allowance and who is eligible to receive it.

Smaller businesses with no additional employees are also eligible for HCSA, albeit with a different structure. In a one-person operation, the owner can withdraw funds from their business’s account to cover their own medical costs. Doing so helps to avoid paying income tax on the money withdrawn.

Where can I get a HCSA benefits for my employees?

A licensed insurance broker can provide you with a Group HCSA for your business and answer any questions about how it functions. A free quote from us can help you determine which provider offers the most cost-effective plan for your business before you make a purchase.

Group Registered Retirement Savings Plan

 Group Retirement Savings Plans: Saving for the future

Owning a business is a large investment. Not only you are investing in the success of the business, but you are also investing in the employees you hire to help your business achieve success over time. One effective way to reward your employees for being productive and contributing to the success of the business is through a group registered retirement savings plan.

Table of Contents

What is a Group RRSP plan?

Why should my employees consider opting into the Group RRSP?

Group RRSP vs Individual RRSP

Where can I get a Group RRSP in Canada?

What is a Group RRSP plan?

Before we jump to Group RRSP let discuss first what is RRSP in Canada means.

To answer it clearly, well there’s no much better answer that we can get out there than the source. According to the Canada government website:

Registered Retirement Savings Plan

or simply RRSP is a retirement savings plan that you (Canadian) establish, that we (government) register, and to which you or your spouse or common-law partner contribute. Deductible RRSP contributions can be used to reduce your tax. Any income you earn in the RRSP is usually exempt from tax as long as the funds remain in the plan; you generally have to pay tax when you receive payments from the plan.

In layman’s terms, RRSP is like a superhero of modern retirement planning that started to rescued each Canadian since 1957.

Now that we’re all cleared about RRSP, let dig differ now to RRSP for employed Canadian.

Also known as Group RRSP, a Group Registered Retirement Savings Plan is an employer-sponsored retirement savings plan administered on a group basis. It’s identical to individual RRSP but only set up by your employer.

Most companies offer their staff the opportunity to join the group RRSP, and participation is optional. Each employee who decides to opt-in receives their RRSP account and full autonomy over how their money is invested. Many plans have members complete a questionnaire beforehand to determine their preferred investment strategy and simultaneously build an investor profile.

Contributions to the group RRSP are automatically deducted from each employee’s paycheque, and the maximum contribution limit in 2019 is 18% of a contributor’s total earned income. Employees also have the option to purchase their RRSP to build up their retirement savings even further.

Why should my employees consider opting into the Group RRSP?

Some Canadians are not naturally inclined to save money, which can prove to be detrimental in later life. With a group RRSP, employees are forced to build up their savings, as the contribution is automatically deducted from their paycheque. Also, the fees for managing this group account are relatively low as compared to those associated with individual RRSPs. On average, the management fees for a group RRSP tend to be less than 1%.

In addition, some employers choose to match their employees’ group RRSP contributions, effectively allowing employees to double their savings. All contributions matched by employers are also tax-deductible for the employees.

Employer’s benefits of having a Group RRSP include:

• Employee retention
• Using them to attract the best talent
• Financial security for employees and their families
• Using them to demonstrate concern for your employees outside of work
  

Group RRSP vs Individual RRSP

In a simple definition, a Group RRSP is just like an individual RRSP but offered through your employer or place of work. It features tax-deductible contributions and tax-deferred growth. The main difference in terms of advantages is that your employer adds to the equation and this difference can be substantial. Also unlike an individual RRSP, members of a Group RRSP are not generally permitted to purchase individual securities.

This group plan is very flexible in terms of how money is received at retirement. The policy member has the option of taking the money as cash, purchasing a life annuity, purchasing a fixed-term annuity or purchasing a Registered Retirement Income Fund (RRIF).

Group RRSP advantages over individual RRSP

• Automatic deductions through payroll for the contributions
• Low minimum deposits
• Low to none administrative costs
• Flexible in terms of eligibility and contribution levels
• Income splitting is optional for a married employee
• Have an option for Enhanced RRIF and annuity rates at retirement

Group RRSP disadvantages over individual RRSP

• Employer contributions are taxable
• Limited investment option
• Shared control (or limited) to withdraw funds
• The plan may be cancelled at any time by the employer

Where can I get a Group RRSP in Canada?

Group Registered Retirement Savings Plans are generally administered by major banks and are also available from licensed insurance brokers. FREE Group RRSP quotes are also available (by clicking the button below) to help you compare the offerings from major insurance providers before you decide.

should I purchase Life Insurance for my employees

 Why should I purchase Life Insurance for my employees?

There are several reasons why you should purchase life insurance for your workforce. First, offering these benefits is an effective way of showing to your people that you value their hard work, loyalty and contributions to the company. Second, it is a way to show your staff that you care about their well-being and that of their families. Finally, a group life policy is also a great way to provide your employees with access to tax-free benefits*.

*Note: Group health and dental plans are subject to taxes in Quebec only.

Where can I get these plans?

Like other kinds of employee benefits, This insurance plan can be obtained from most licensed insurance brokers like us. Before you make the call, however, you can also get a free quote by clicking the button below to help you learn more about the options available to you.

Group Life Insurance policy

 What is a Group Life Insurance policy?

Well from the word itself,

Group Life Insurance is no different from individual life policy but only designed for a group of people. Normally, the policy owner is an employer or an entity such as a labor group or organization, and the policy covers the workers or members of the group.

It is often offered as part of a complete employee benefits package for the purpose to attract highly skilled and good employees and make them stay for good to the company.

What are the typical Group Life Insurance benefits?

A typical Group Life policy will include the following benefits:

Accidental Death and Dismemberment Insurance

A predetermined amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries) when an accidental death occurs. This can be a defined maximum or a multiple of an employee’s annual earnings. There are also benefits paid out if an employee suffers a loss or loss of use of certain body parts. You can find a full list of what is covered inside your policy booklet.

Critical Illness Insurance

This coverage includes a defined amount that is paid to an employee who suffers any of the covered illnesses. The covered illnesses vary based on the insurance provider. The illnesses most commonly covered under this benefit include:

• Cancer
• Heart attacks
• Heart bypass surgery
• Strokes

Dependent Life Insurance

A set amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries). This can be a defined maximum or a portion of an employee’s annual earnings.

Employee Basic Life Insurance

A set amount that is paid out to a deceased employee’s designated beneficiary (or beneficiaries). This can be a defined maximum or a portion of an employee’s annual earnings.

Group Life Insurance

 Essential Life Insurance coverage for your employees

The majority of group benefits packages include some form of group life insurance coverage. This benefit is usually provided at little or no additional cost to employees and often allows them to cover their spouses and children as well.

Group life policy usually provides basic but necessary life insurance coverage, and the coverage is lost if a member leaves the company. If that is the case, the departing employees are given the option to convert their coverage to an individual life insurance policy.

The maximum amount of the benefit is determined by the size of the group. There are two types of maximums:

• Non-evidence maximum
• Overall maximum

The non-evidence maximum is the amount of insurance the provider will cover without proof of good health. The larger the size of the group, the larger the non-evidence limit will be. If a group requires a higher limit, each eligible employee will be required to provide proof of good health. The overall maximum is the maximum amount of insurance the insurance company will cover.

Table of Contents

What is a Group Life Insurance policy?

What are the typical Group Life Insurance benefits?

Why should I purchase Life Insurance for my employees?

Where can I get these plans?

the different types of Group Disability Insurance

 What are the different types of Group Disability Insurance?

There are two types of group disability benefits:

Short Term Disability

This type of insurance is designed to protect an employee from any loss of income incurred by an accident, illness or injury that temporarily prevents them from working. The policy provides the employee with a percentage of their income to help manage expenses. It does not, however, provide coverage for accidents that occur within the workplace; these are typically covered by workers’ compensation insurance instead.

Long Term Disability

Like its short-term counterpart, this policy also provides employees with protection in the event of accidents, illnesses or injuries. The main difference is that it is designed to cover an extended absence from work. Employees with long-term disability insurance generally receive between 60 and 70% of their regular income.

Both types of group disability insurance are comprised of four key components:

• Benefit period – The benefit period is the amount of time in which long-term disability benefits will be paid for. The plan can be set up with two or five years of coverage, or a benefit period that lasts up until age 65.
  
• Benefit maximum – The benefit maximum is determined by the size of the group receiving the benefits and the nature of the business. There are two types of maximums: non-evidence maximum and overall maximum.
  The non-evidence limit is the limit of insurance the insurance company will cover without evidence of good health. The larger your group, the larger the non-evidence limit will be. If your group requires a higher limit of insurance, each eligible employee will be required to show proof of good health. The overall maximum is the maximum amount of insurance the insurance provider will cover.
• Benefit schedule – The benefit schedule is the formula used to calculate long-term disability benefits. The amount of long-term disability benefits is usually calculated by a percentage of the pre-disability monthly earnings of the employee. The percentage of the pre-disability monthly earnings eligible for coverage varies and can be modified to meet the needs of the business and its staff.
• Elimination period – The elimination period is the waiting period that disabled employees must complete before receiving long-term disability benefits. This group plan can be set up with elimination periods of 105, 119 or 180 days. The elimination period options often vary based on the insurance provider.

Where can I get this plan for my staff?

Group Disability Policy is available from most licensed insurance brokers, who can also provide you with helpful information about other types of employee benefits. You can also get a FREE quote today (by clicking the button below) to get a better picture of the employee benefits landscape and find a plan that aligns with the needs of your company and its employees.