While employee benefits in Canada vary depending on organization size and needs, most companies are trying to find the right balance between cost and employee satisfaction. Many benefits may seem like unnecessary extras, but the fact is they allow employees to live happy and productive lives. In Canada, employee benefits are a major way for employers to show their appreciation and support for their compensation and benefits. But what are the different types of benefits available in Canada? And what should you look for in an employer’s benefits package?
Employee benefits
Health benefits and dental coverage are among the few employee benefits that are considered nontaxable in Canada. To be tax-free, these benefits must be provided as part of a formal arrangement between the employee and employer. This arrangement is called a Private Health Services Plan (PHSP).
Some of these benefits may be taxable, depending on their location and industry. You should consult a CPA or tax advisor for further details. In general, taxable benefits and services in Canada are pensionable and insurable and are therefore compliance. Employers may also have to deduct certain contributions from employees’ pay, such as Canadian Pension Plan and Employment Insurance premiums. In addition, taxable benefits are often subject to tax deductions.
Minimum annual insurable
We provides unemployment benefits to eligible individuals. Employees and employers contribute to the program according to their earnings. In 2018, the maximum contribution amount was $51,700. This is a change from the previous year. For now, employers must contribute the full amount of insurable earnings, and employees must contribute a certain percentage of their earnings. This will help the program fund enhanced benefits for those who are unemployed.
If an employee has reached the maximum amount of insurable earnings for a year, deductions will be stopped on their QPIP premiums and EI premiums. If they are working in an exchange program, they must report to the province to participate in the program. However, if an employee works for an employer that does not report to the province, they can continue to receive their salary without being subject to QPIP deductions.
Worker’s compensation
Workers’ compensation and benefits in Canada are a vital part of protecting an injured worker from having to spend their own money to pay for medical bills. As a form of collective liability, workers’ compensation benefits are shared by all employers. As a result, the compensation fund is guaranteed to pay out. Claims are adjudicated by a compensation board, which is independent and unbiased, focusing on the needs of both employees and employers.
The workers’ compensation system in Canada was the first social program in the country. Both workers and employers preferred the system because it reduced their risks of suing. Ontario Chief Justice William Meredith proposed the workers’ compensation system, which required employees to sign a contract giving up their right to sue. The system was introduced to various provinces at different dates. Although the systems in the two countries are similar, the rules and regulations vary by province.
Flexible benefit plans
There are numerous advantages of a flexible benefit plan for employees. They allow employers to control annual benefit costs, and employees can choose their contributions and benefit packages. Employers can also reduce duplicate coverage by offering non-taxable services, such as a health spending account. These plans may even offer 100% reimbursement for qualified expenses. But it is important to understand the differences between flexible benefit plans and traditional plans. To learn more, consult the compensation and benefits service in Canada.
One important aspect of a flexible benefit plan is communication. Since the terms of flexible benefit plans often change, the human resources department needs to be in constant communication with employees. An easy-to-use platform is essential to keep up with changes and ensure compliance with all applicable laws. Moreover, employees need to know about any changes to their plans as soon as they occur. This will prevent employees from feeling left out or dissatisfied.
Maternity leave
If you are planning to take parental leave in Canada, you will be glad to know that it is supported by the federal government. Canada provides parental benefits to working women, which allow them to earn income during the time they are off work. Unlike in the U.S., Canada gives new mothers a full 18-month period to care for their newborn. You can also take advantage of the parental insurance benefits in the province of Quebec, which are different from EI benefits.
Some companies offer maternity leave top-ups to their employees, which covers the difference between the EI benefits and the regular wages. The top-up is free money that should be seized by couples. However, regular benefits will not be applied during the time you are off. You may be able to avail of this benefit if you are self-employed. Moreover, some employers offer additional benefits to their employees such as health care coverage.
