It is no secret, employee group benefit plans provide a substantial financial advantage to employees who benefit per their own workplace or via a spousal program. Though offering benefits is not legally required of employers, according to a 2016 Sun Life Financial Study, about three-quarters of Canadian employees believe they are entitled to benefits.
That may as a result of more than half of the respondents reported being experiencing one or more serious health issues:
- 29% say they have experienced a mental health issue such as debilitating stress, anxiety, depression, or substance abuse
- 16% have a chronic or degenerative condition such as diabetes, Multiple Sclerosis, or Alzheimer’s
- 12% had a serious accident
- 10% experienced a serious health event such as a stroke, heart attack or Cancer
- 2% have received a terminal illness diagnosis
Within this segment of respondents, 42% said these conditions have impacted them financially.
Without access to a well-designed benefit plan, employees may go without the coverage they require and suffer mentally, physically, and financially as a result, or they may seek employment elsewhere where benefits are provided.
Alternatively, those employers not providing benefits may be turning their back on an excellent tax deduction for their corporation. Health and dental benefits in Canada, outside the province of Quebec, are considered non-taxable and all premiums paid by an employer towards employee group benefits is considered a corporate tax deduction.
Disclaimer: Please note that the information provided, while authoritative, is not guaranteed for accuracy and legality. The site is read by a world-wide audience and employment, taxation, legal vary accordingly. Please seek legal, accounting and human resources counsel from qualified professionals to make certain your legal/accounting/compliance interpretation and decisions are correct for your location. This information is for guidance, ideas, and assistance.