Beginner's Guide to Employee Benefits
Employee benefits are non-wage compensations provided to employees in addition to their normal salary. Understanding the landscape of employee benefits is crucial for both employers and employees to make informed decisions.
Why Employee Benefits Matter
For Employers: Benefits help attract and retain top talent, improve employee satisfaction, reduce turnover costs, and can provide tax advantages. A strong benefits package is often a deciding factor for candidates choosing between job offers.
For Employees: Benefits provide financial security, health protection, and peace of mind. They can represent an additional 15-30% of total compensation value to the Employee. Making them a crucial part of overall compensation.
Typical Requirements of Benefits Plans
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Company must be in business for at least 6-12 months
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Eligible Employee's must have Provincial Health Care coverage to qualify
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Eligible Employee's must be full time (over 20 hours per week, and not Seasonal)
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Independent Contractors working with a Company are typically not able to join the Benefits plan since it would jeopardize their "Independent Status"
Getting Started with Benefits
When designing a benefits package, consider your employees' needs, your budget, and industry standards. Start with essential coverage like health and dental, then add additional benefits as your business grows.
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Assess your team's demographics and needs
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Set a realistic budget (typically starting at 5%of payroll)
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Research industry benchmarks
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Consider employee feedback and preferences
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Start simple and expand over time
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Regularly review and adjust your offerings
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Talk to the team at BenefitSimple if you want more help in designing your plan.
1
Health Spending Account (HSA)
A Health Spending Account (HSA) is a tax-advantaged benefit that allows employers to provide employees with a pool of money to reimburse eligible health expenses. It acts like a bank account for medical expenses, with funds deposited by the employer, that can be used for things like dental, vision, and prescription drugs.
2
Life Insurance
Financial protection for employees' families, providing peace of mind and security. Often includes basic life insurance with options for additional coverage.
3
Disability Coverage
Income protection if employees become unable to work due to illness or injury. Includes short-term and long-term disability options.
4
Health & Dental Coverage
Comprehensive health coverage including medical, prescription drugs, vision, and paramedical services. Essential for employee wellbeing and financial protection.
Preventive and restorative dental coverage including cleanings, fillings, crowns, and orthodontic care. Helps maintain oral health and reduces out-of-pocket costs.
5
Retirement Savings Plans
Help employees save for their future with retirement savings plans, often with employer matching contributions to maximize savings.
