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].

Canada is one of the few countries in the world that provides universal healthcare.

Canada’s healthcare system covers individuals with basic needs, such as doctor visits and emergency care. If you live in Canada as a citizen, temporary or permanent resident, you are qualified to receive this coverage. It means that if you have a medical emergency, you don’t have to worry about how you’re going to pay for it.

However, does that not mean that everything healthcare-related is free. Far from it. There are plenty of healthcare services that require payment, or private insurance coverage, including:

Prescription medications
Dental care
Vision care
Physiotherapy
Ambulance services

According to the Canadian Institute For Healthcare Information, private funding amounted to 30% of Canada’s total health expenditures, which reached $264 billion in 2019. The high number highlights the importance of getting private healthcare insurance to cover non-basic healthcare.

However, the average Canadian household spends $4000 on private insurance premiums a year, which can be substantially expensive for many individuals. It is why Canadians rely on their employers to provide them with additional healthcare coverage – particularly group health insurance.

As an employer, providing coverage can prove beneficial for both employers and workers. And despite concerns about the cost of providing health insurance, it is not as expensive as it seems.

What Are The Benefits Of Employee Group Health Insurance?

Cheaper Than Individual Packages

Financially, group health insurance plans are designed to be more cost-effective for businesses. Instead of providing individual coverage, group health packages are less expensive for everyone involved. More so, employers can provide more coverage within a group insurance plan as opposed to personal ones, such as including Health Spending Accounts and Wellness Spending Accounts, and group retirement plans.

Create a positive work environment for employees

Happy employees are employees that work hard for the company. It’s why providing them with coverage will increase their commitment to your business. By offering group health insurance plans, employees appreciate the company, feel valued and respected, and will want to stay in the company.

Attract Quality Employees & Retain Them

Group health insurance is a fantastic attraction for employees. It’s a way to bring in top-tier workers, and most importantly, retain them for the long-term.

Maintain Productivity

With the option of receiving healthcare benefits, employees will seek treatment quicker than before, ensuring they return to work faster. That change can make a significant impact on your workplace’s productivity and resources.

Tax Offset

Providing group health insurance also provides both you and your employees with eligible tax offsets. Rather than paying employees a higher salary, employers can subtract expenses and place them in the group benefits plan. In turn, that lowers payroll taxes and opens up the opportunity to tax offsets. Employers that pay into a group insurance plan can consider it as a tax-deductible business expense.

What Is Average Cost Of Providing Employee Health Insurance?

Due to the flexibility that comes with health and dental plans for small businesses in Canada, determining the final cost for employers to provide employee insurance varies.

According to AGA, “the average annual premium for a group insurance plan normally ranges between $1,500 and $4,000 per employee “. For many businesses, spending between that range amounts for nothing, especially considering the benefits that your workplace will gain.

Once again, your plan will vary depending on what type of coverage you want to provide for your employees. As you notice from the benefits mentioned above, it is better to provide insurance than not.

With 90% of insurance accessed in Canada is through Group insurance, employers recognize the value that comes with health and dental plans for companies.

But while the advantages of obtaining group health benefits plans for small businesses are well known, deciding on a plan for your small business can be challenging.

You have to consider several factors, such as your budget, the number of employees in your group health, the needs and requirements of your employees and what would you like to provide your employees.

Even then, it can be challenging to narrow down which health and dental plan is best. With so many options around, it can be overwhelming to choose one that works for your small business. Listed below are some of the most common options available.

The Different Options For Health & Dental Plans For Small Businesses In Canada

Basic Insurance

Basic insurance, also known as traditional health insurance, is the most basic of all plans. For small businesses, the option is very familiar. You pay a monthly premium to an insurance company in exchange for the basics of your insurance, including life insurance, health insurance, as well as accidental death and dismemberment. Depending on who your insurance provider is, your coverage will vary.

Flex Plans

Also known as “cafeteria plans”, a flex plan allows employees to select the benefits that will be most useful to them. They can choose from more expensive policies or sign up for the most basic coverage. This allows each employee to select their own type of medical coverage, as they will most likely use the benefits they have assigned for themselves.

For business owners, a flexible benefits plan helps by creating options within an employer-defined budget. You begin by setting a budget that fits your business. Employees then choose only the benefits they desire, with employers not paying for the benefits they don’t use or want. During the benefits selection process, employees will see the total cost for their benefits, which drives increased appreciation for your business’ contribution.

The only downside to flex plans is that they are difficult to administer and to communicate with the team. It also requires extra work and can usually lead to higher premiums, especially if employees select more expensive plans or services.

Modular Flex Plans

Modular flex plans are one of the most popular options these days for smaller businesses. Similar to traditional health coverage options, modular flex plans provide coverage for specific benefits, such as vision, disability, and dental insurance in Canada.

The significant advantage with modular flex plans is that it is made up of a package of several different benefit bundles that can be used by employees to select a benefit-pack of their choice.

With modular flex plan options, you can also get health spending accounts, wellness accounts, or even RRSP contributions.

Health Spending Account (HSA)

According to Sanofi, employees that have access to wellness programs (63%) and health-care spending accounts (60%) are more likely to be satisfied with their health benefits plan compared to those without those benefits. This statistic highlights the demand for employers to include these services to their policies. But what are the differences between Wellness Spending and Health Spending Accounts?

Health Spending Accounts (HSA) cover medical services that impact the health of employees. It is why their HSAs include dental insurance, prescription drugs, physiotherapy, and vision. Significantly, an HSA is a tax-free allowance. All expenses are 100% tax-deductible for businesses, and employees do not pay tax on their purchases.

A Wellness Spending Account (WSA) covers services that are only concerned with wellness and health services, as opposed to medical services. They include more health-related services, such as gym memberships, nutrition advice, over-the-counter supplements, personal development, courses and textbooks, mental health and therapy. A WSA is added to an employee’s taxable salary, as opposed to an HSA, which is tax-free dollars. When the reimbursement of the WSA takes place, the expense will be added to the employee’s total taxable income.

Wellness Spending and Health Spending Accounts can be included in modular flex plans or separately on their own. It varies from policy to policy.

Find The Group Health Plan That Work For Your Small Business

Finding a plan that works for your employees can be complicated, but not if you get help. It would help if you spoke to an insurance provider for more information on obtaining a group health insurance and a dental plan for your small business.

With 2020 in full swing, as a business owner, you are in the midst of reviewing your plans, policies and deciding on the outlook for the new year. One of those assessments is the group health insurance plan for your employees. It could be time to consider updating or getting a new policy, especially if your current plan indicates the following:

You’ve added several employees

If your business is growing and you’ve added new employees to expand your operations, it comes with caveats that you need to adjust your group health insurance plan. Make sure that your policy is designed to cover all your new employees, and if any amendments have to be made to your policy. If your company is growing rapidly, you can get Modular Flex Plan, which is an excellent option for companies with 50+ employees.

Your Group Insurance Benefits plan is the same for all your employees

Although group insurance benefits are there to protect your employees, not all your employees face the same issues, risks and medical conditions. While it is reasonable to have a singular benefits plan to cover all your employees if you notice that their needs are vastly different, consider offering greater flexibility by including either a Health Spending Account or Wellness Spending Account or both. It can go a long way to keep your employees satisfied.

Your deductibles are still set too low

As health prices rise, it is essential to make sure that your employees are covered when using their group health insurance. This is where it is vital to consider the deductibles of your plan and how it affects your employees. It is best to discuss it with your insurance company and find the best approach, whether that is increasing the deductible, eliminating it or reducing the reimbursement percentage.

Your maximum disability benefits are too low

Your employees want to know if their future is secure if the unfortunate should happen, and they cannot work any longer. Upon reviewing your group health insurance, if you notice that your employees are not receiving sufficient replacement income should they become disabled, it is time to consider adjusting your plan. That added security can go a long way to easing any fears your employees might have. Make sure you also account for inflation when adding the numbers.

Life Insurance is not high enough

Your employee’s financial security is one of the critical points in your plan. But more than that, it’s security for their family. Life insurance is a key point in all this, so you have to consider if the life insurance fee is high enough to help support the family if something tragic were to happen. It is usually recommended to offer at least one time the annual salary as basic life insurance coverage.

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.

As an employer, you know that getting a group retirement plan can help your company solidify itself for the future. Not only will your contributions to the plan be tax-deductible, but it will keep your employees committed for the long-term, reducing the need for hiring new workers and ensuring productivity levels are maintained.

But what about the benefits of your employees? Alongside group health insurance plans, it is in your best interest to offer your employees a group retirement plan that helps them secure their future. Here’s why:

What is a Group Retirement Plan?

But firstly, let us explain what a group retirement plan is. In basic terms, it is a pension plan, much similar to RRSP, but is set-up by employers for the benefit of their employees. The policy is designed to provide employees with a plan to save for their retirement, as well as help them contribute more to it.

5 Ways a Retirement Plan Benefits Your Employees

1. Entice New Employees & Keeps Them Committed

Without question, a group retirement plan is an enticing prospect for would-be employees. It highlights a willingness on the company’s part to commit to the employee in the long-term, and in turn, the employee will stay knowing that their future is safe. Just like group health insurance plans, employees will feel valued by the company, showing loyalty in return.

2. Helps Employees With Their Retirement

Did you know that according to a new CIBC poll, 32% of Canadians between 45 and 64 have nothing saved for retirement? That is a staggering number, and while it is not a good outlook for employees and the economy in general, companies can alleviate that stress by providing group retirement plans. Employees will commit and feel comfortable with the knowledge that their future savings are being looked managed. The alleviated stress will also help employees focus on their jobs, helping increase their productivity.

3. Contributing To Their Savings

It has been known that a lot of people struggle to save. Whether it is because of overdue debt or household living costs, people struggle to put money away. The group retirement plan provides a helping hand. Contributions into the group retirement plans are directly withheld from the employee’s pay, thus making it much easier to save. Employees will find that they will be able to save money easier when it is done for them.

5. Employer Match Helps Produce More Savings

If an employer decides to make contributions to the group retirement plan, employees will accumulate funds quicker than ever. Employees will be able to continue working knowing that their future funds are given a helping hand by their employers. They will also feel happier that the company is committed to them in the long run.

As you can see, getting a group retirement plan can be beneficial for your business. Speak to a professional today and find the time to get your plan sorted.

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.

Great employees are an employer’s most valuable resource, which is why they have to do everything in their power to keep them. Employers recognize that providing high-quality group health insurance is a way to attract, retain and engage employees for the long-term.

Understanding The Finer Details About Group Health Insurance

Group health insurance is coverage that employers offer to their employees that helps pay for health care expenses. The insurance company that provides the coverage will reimburse employees for a portion of their medical costs, depending on the amount and services stipulated in the plan.

In most cases, provincial healthcare plans cover employees for ‘basic’ healthcare (doctor visits and medical care) so employers will look to include additional benefits in their insurance plans.

They can sponsor a wide selection of insurance, including life insurance, vision, prescription drugs, dental insurance, and professional services such as chiropractic, massage therapy, physiotherapy and more. Nowadays, coverage can even include access to telemedicine companies, such as Wello and GOeVisit. These services provide employees with a virtual consultation with medical practitioners. Instead of going to the doctor, employees can now have a direct virtual conversation with a medical professional to discuss general concerns, minor illnesses, as well as apply for prescriptions.

Why Get A Group Insurance Plan For Your Business?

The idea is to provide employees with a safety net in regards to their health expenses and their overall health. Employees will feel comfortable knowing that employers are concerned about their well-being and that they don’t have to spend their money on individual insurance.

For employers, the advantages are evident. High-quality group health insurance plans attract and retain employees for the long-term, but also leads to a healthier and more productive workforce. Employees that have access to medical services at a lower price will seek care, which means fewer missed days at work, higher returns from illnesses, and greater productivity.

Financially, group health insurance plans are designed to be more cost-effective for businesses. Rather than paying employees a higher wage, they can subtract the expenses and place it in the group benefits plan. That means employers pay lower payroll taxes. Furthermore, in most provinces within Canada, whatever employers pay into the group insurance plan are considered a tax-deductible business expense.