Whether you are looking to expand your business or are currently a Canadian resident, hiring a compensation and benefits service is vital. Depending on your location, you may be required to comply with various regulations concerning payroll, social security, and entitlements. Non-compliance can result in fines and compensation and benefits. It is also crucial that you understand the benefits provided to employees and how these affect the relationship between an employer and employee.
Nontaxable benefits
Whether your company provides taxable or nontaxable benefits to its employees is a matter of tax planning. The Canadian Revenue Agency defines a benefit as anything that is personal in nature, and this can include allowances, reimbursements, and even personal goods and services. These benefits can range from reimbursement of personal expenses to compliance allowances. This article will discuss some of the most common nontaxable employee benefits. Using cell phones for work is one example. However, if your employer reimburses you for the expense, you must report that cost to your employer.
One common way to offer a nontaxable benefit to employees is to issue company-owned phones or laptops. While issuing a phone or laptop to employees is generally considered a taxable benefit, companies must carefully monitor their use of the devices to ensure that they remain nontaxable. CRA may question the value of the allowance, as long as the fixed costs are reasonable and personal usage does not incur overages. Retailers and manufacturers often offer service only to employees, but this may raise questions.
Statutory benefits
What are statutory benefits? In Canada, they are benefits set by law and paid by employers. Statutory benefits such as Employment Insurance, family benefits, disability coverage, sick leave and more may be available to Canadian workers. Statutory benefits can also help Canadians who are unemployed for several reasons, including being sick, pregnant, caring for a newborn child, adopting a child or other family member, or caring for an elderly relative.
Providing statutory benefits to employees is crucial to ensuring the health and welfare of workers. These benefits can include a pension, legislated parental leaves, paid time off, health insurance, and even eye exams. Many employers also offer supplemental benefits, such as retirement, healthcare, flexible work schedules and workplace canteens. Some companies even offer virtual care and mental health training. The benefits can even include access to digital health platforms.
Employer-sponsored benefits
Canadian employees value the extended healthcare options offered by their employer. In addition to medical coverage, many Canadians value access to affordable prescription drugs. The highest-rated employer-sponsored benefits in Canada are disability, life, and death benefits. Medical, dental, and optical benefits are common, as are disability and programs. The employer can choose to cover only a percentage of the cost of these benefits or offer the full benefit package.
In Canada, nearly ninety percent of employers offer an extended health care benefit that complements the government’s public health insurance plan. Typically, this benefit includes hospital and prescription drug coverage, as well as out-of-country coverage and paramedical practitioners. Many large employers also offer an extensive menu of voluntary health benefits at discounted prices. Innovative voluntary programs are becoming common, with many companies offering a range of benefits at discounted prices.
Worker’s compensation
Worker’s compensation and benefits service in most provinces of Canada is a legal requirement. Although the majority of employers must contribute to workers’ compensation insurance, there are some exceptions to this rule. Self-employed workers may purchase personal coverage instead of employer-provided coverage. Additionally, some provinces require employers to provide workers’ compensation insurance to those who are self-employed. If you have an injury or illness in the workplace, you can apply for compensation through the workers’ compensation and benefits service in your province.
Although the principles of workers’ compensation are similar in Canada and the U.S., there are some key differences. While the two countries share similar objectives, they also have different industrial mixes. In California, for example, a higher percentage of employees work in high-risk industries, resulting in higher expenditures for worker’s compensation insurance. In Canada, some workers’ compensation schemes allow large employers to self-insure.
