When I work with business owners and HR departments, we brainstorm for innovative ways to compensate key staff or departments. T4 income (salary) is always the first target.
Once we identify all of the various ways we can do that, I inform them of additional methods to compensate employees that they have not considered, which are more tax efficient to the businesses bottom line and for the employee’s.
Here are the facts you must consider when considering bonuses and additional compensation:
- Opportunity Missed: Only 40% of small businesses offer their employees a group benefits plan
- Myth: A lot of small businesses believe they are too small to qualify for group benefits – WRONG
- Meet The Real Need: Studies show that when employees are choice of $10,000 or health benefits, 59% of prefer the benefits!
- Support the Employee, Not the Taxman: Benefits have more value due to their non-taxable status for employees in most provinces
- Improve Loyalty and Retention: Group Benefit plans foster a healthy and productive workforce…in 2011 it was reported that Generation Y (20’s and early 30’s) value group benefits like no other, with a particular focus on health and wellness offerings
So, when you are considering compensation remember:
- Employees value benefits above income
- You only need 1 employee to set up a Health and Dental Benefits Plan for your organization
- Benefits make you a more attractive employer
- Group Benefits are the most tax efficient way for the company to compensate employees
Not all benefit plans are equal. Call us for a free consultation on the perfect design to meet your needs.
Group Benefits Specialist
Vision Financial Inc.
To be the preferred choice in Group Benefits and Group Investment advisory services for Canadian companies.
We will help you by providing a lifetime of solutions for both corporate and personal financial affairs.