What are the top 5 employee benefits?
BY Jennifer Paterson, Benefitscanada.com | February 9, 2016
The five most common employee benefits offered by Canadian employers are health and dental insurance, group life insurance, training expenses, vehicle allowances, and gifts and awards, according to a survey by the Canadian Payroll Association (CPA).
Its Employment and Retirement Benefits Survey, which polled nearly 4,000 payroll practioners across Canada, rounded out the top 10 employee benefits with the following: cellular phone service, counselling services, disability-related employment benefits, income maintenance plans and other insurance plans (short- and long-term disability, accidental death and dismemberment, group sickness plans), and RRSP contributions.
In its survey, the Canadian Payroll Association pointed out these benefits, along with more than 100 others, must be reviewed for tax implications by payroll practitioners when reporting employee income.
Medical and dental insurance and reimbursements were identified as the most commonly administered benefits for retirees, followed by life insurance. Compared to active employees, the amount of policy coverage for retiree life insurance is considerably lower. Almost two-thirds (62%) of retirees have $25,000 in coverage or less, with 40% having coverage of $10,000 or less.
“It is important for employers to educate themselves and their staff on payroll compliance requirements as a way to avoid costly penalties and fines,” said Janet Spence, the CPA’s manager of compliance services and programs.
“Each year Canada’s 1.5 million employers administer $901 billion in wages and taxable benefits, and it is critical they have the compliance knowledge needed to properly identify and administer both taxable and non-taxable benefits.”