Name: Perlinger Group Benefits
Address: Calgary, AB
Telephone: 1-877-217-7829
Price range: $000 - $000

With tax-season in full-swing, employers and employees across Canada are submitting their taxes, looking for every possible tax deduction.

The Canada Revenue Agency (CRA) determines what can and can’t be taxable, and with the constant changes, it can be challenging to decide what can be submitted as a deduction.

You may have some valuable company perks, such as a cell phone, tuition reimbursement or service awards. But these may not provide any tax benefits. Group health benefits, on the other hand, are a different story.

Defining Group Health Benefits

Group health benefits can encompass a wide range of services and products, commonly including:

Wellness Spending Accounts, such as gym memberships
Health Spending Accounts, such as funds for physiotherapy
Dental insurance across Canada
Vision care
Retirement benefits, such as RSSP submissions
Life and disability insurance

There can be many other additional services that can be covered through group health insurance. It all varies on the type of coverage employers provide employees. As such, the taxable benefits also vary.

What Group Benefits Are Taxable In Canada?

Determining what is taxable can be tricky for both employers and workers.

For employees, in general, employer-paid premiums for group life insurance (for both employees and dependents), accident insurance and critical illness insurance are considered taxable benefits. This can be applied at both a provincial and federal level.

However, it should be noted that short and long-term disability insurance is not considered as a taxable benefit at either the provincial or federal level. Even if the coverage is paid by the employer, short and long-term disability insurance does not count as a taxable benefit.

Any contribution to an employee RRSP, as well as any related administrative fees, are taxable. However, that same employer contribution made to a Pension Plan or Deferred Profit Sharing Plan (DPSP) is not considered a taxable benefit for employees.

As for employers, the premiums for group health insurance count as business expenses and, therefore, the premiums you pay on your employees’ behalf are not considered to be a taxable benefit.

Overall, it can be quite confusing to determine what is taxable and what isn’t. To avoid confusion, make sure you speak to your group health insurance provider for more information. Only then will you have a full understanding of what to expect come tax time.

Perlinger Group Benefits has been offering exceptional group benefit plans since 1992. Our goal is to provide the best group health insurance plans to meet your business’ needs, regardless of the size of your business. We make it affordable and easy to get access to comprehensive benefits plans. Contact us today: Direct Line 403-217-5560 | Toll-Free 1-877-217-7829 | Email [email protected].

Most Canadians consider group health insurance plans part of their workplace agreement and consider it as one of the most critical factors in them joining or working with a company.

However, choosing a group health insurance plan that keeps your employees happy, and benefits your business can be difficult if you do not consider the following factors.

The Four Factors To Consider When Choosing A Group Health Insurance Plan

1. The Demographics of Your Employees

According to a Sun Life Financial report, Gen Y employees believe that positive mental health is essential for an employee’s overall well-being. Meanwhile, Millennials, Gen X and Baby Boomers believe that the physical support is the most important. This research highlights the specific generational differences when it comes to group benefits.

As an employer, you have to consider the employee demographics in your office when deciding on a group benefits plan. Does your company have a broad mix of generations or not? Are they young go-getters, or wise boomers? Consider who is working for you, and how you can appeal to them by constructing a plan around their needs, regardless of how different they are.

2. Your Financial Restraints

With a firm idea on what your employees want, it is time to see how it can fit into your budget. Think about how much you are willing to spend on benefits and how much you can realistically afford. You have to take into consideration premiums, co-insurance policies, deductibles and out-of-pocket maximums that form as part of your plan. Calculate every angle and dollar, so you know what you can or can’t provide to your employees.

3. The Amount of Coverage

Typically health spending accounts, pharmaceutical drug coverage, and dental insurance in Canada are considered typical of many group insurance plans. But that doesn’t mean it covers the needs of your employees, and provides them with the optimum care they need.

You have to look at what you can get for the amount you want to spend. You can get group health insurance plans for as low as $75 per employee, but they don’t get enough coverage. Or you can pay a little more and they get everything they need. Assess the type of coverage you’ll get for the price you want.

4. The Industry You Operate In

Consider the industry that you work and what kind of coverage will best help your employees. For example, blue-collar jobs require more physical demands, which can place a burden on your employees. Providing them with physio benefits can help them recover quicker if they get injured. They’ll also be happier knowing they have coverage if something does go wrong.

White-collar employees, on the other hand, face high-stress situations, which can cause significant mental issues. Your employees might appreciate having mental health benefits, such as coverage for seeing a psychologist, or massages, as part of their group benefits plan.

Knowing your industry and what your employees’ experience will help you determine a benefits plan that suits your company.

Although Canada is blessed to have universal healthcare, people are not covered for all medical expenses. This can place a heavy burden on people, their livelihood and their income.

It is why businesses – big and small – should obtain group health insurance plans for their employees. These plans provide supplemental coverage to better ensure the physical, mental and financial health of employees and their families. Employers, too, will also experience many advantages if they obtain group health insurance plans at their establishment.

How Does Group Insurance Benefit Employees?

Several advantages come with providing employees with group insurance plans as opposed to individual benefits. Most significantly, the higher the number of people in the pool (group), the more flexibility there is available for employees. This can include adding coverages like vision and orthodontic dental insurance in Canada or offering employees flexible options to choose their own plan design. It also means that there can be more coverage for life insurance and disability insurance, as well as better constructed and lower-priced plans.

Employees will also be more proactive to get medical assistance when they know they have options available to them. That means less sick days in the office, a higher rate of productivity, and happier and committed employees.

How Does Group Insurance Plans Benefit Employers?

For employers, group health insurance plans have a longer-lasting positive impact on the workplace.

Financially, group insurance plans are designed to be more cost-effective for businesses.

Firstly, there are few ways for an employer to transfer funds to an employee while avoiding payroll taxes. By funding a group health insurance plan or health care spending account, employers are able to do exactly this. Premiums paid for group health insurance, dental insurance, and health care spending accounts are tax-deductible for the employer and tax-free to the employee.

Secondly, due to the high number of employees, employers can get group plans for a better competitive rate, instead of paying more for individual plans.

Culture-wise, providing group insurance plans is a sign of protecting a valuable investment: employees. Significantly, the plan creates a sense of security and belonging at work, keeping employees safe, secure and happy. Employee morale will improve, and they will be loyal to the company.

They will also maintain productivity as they will facilitate returning to work earlier if they are supported and provided with coverage.

Finally, the better the plan, the better the opportunity for employers to attract and retain employees. Group insurance plans are a significant part of an employee’s contract, highlighting a commitment from management, which will be returned as the employee will stay in the company longer.

Getting group insurance plans can provide both employers and employees with huge benefits, resulting in an overall improvement of any company.

For many businesses, it is the sticking point when it comes to developing group health insurance plans: “Do I offer my employees dental insurance?”

There is only one answer to this question: Yes, you should.

And here is why.

Why You Should Offer Employees Dental Insurance

Dental Insurance Is More Flexible Than Expected

There is an assumption that dental insurance is vastly expensive for businesses, big and small. But that is not the case at all. Group health insurance plans are very flexible, so it can be customized to what your business can do. You can get dental insurance that can cover a wide range of dental services including check-ups, exams, cleanings, x-rays, fillings, extractions, crowns, root canals and dentures. The plans are flexible, so your business can be flexible too.

Dental Insurance Offers Preventative Care

There is an intrinsic connection between oral health and overall health. The better your dental health, the better your overall health. So it is therefore essential to look after your teeth in the long run, and taking preventative care is vital. Dentists offer quality preventative care, so they can stop any issues from happening down the line. Being proactive means less need for your full-on dental work in the future.

It Is Essential To Employee Wellness

As we touched on it above, the healthier your employees, the better off they will be. Yes, dental work is not as dangerous as other issues, but if left untouched, it can become life hampering. If your employees are unwell and struggling with dental work, that means they are not going to be coming into work or delivering as expected. Dental insurance provides them with the incentive to go to the dentist, get themselves checked-up, get healthy and jump back into action. Dental insurance can go a long way toward keeping employees well—and keeping business running smoothly as a result.

Employees Want It Let’s face it: dental work is expensive. So no employee is going to reject the chance to have some coverage when it comes to their teeth. If you want to keep your employees around and entice them with great benefits at your work, you are going to have to provide them with some dental coverage. For small businesses, it is an effective way to compete with large companies by offering more appealing group health insurance plans to more qualified employees.