It’s safe to say that as a business owner, you’re always looking to make smart strategic decisions. You’re constantly looking to save money while remaining competitive in your industry. An important aspect of maintaining your competitive edge is retaining key employees, and this is usually this is done through incentives such as bonuses and/or raises.
It’s a straightforward concept: you reward good work with a raise or a bonus. However, consider that the pay increase actually costs you more when you take into account payroll deductions such as CPP, EI and vacation pay.
Furthermore, for your employee, the value of the raise is greatly reduced due to federal and provincial taxes.
On the other hand, by offering your employees a group benefits plan, you’re providing them and their families with medical and financial peace of mind. Health and dental benefits are tax-free to employees and your contributions are considered a tax deduction.
A group benefits plan is a win-win situation.
Not only does a group benefits plan help retain valued staff, it works to attract prospective employees in the future. A benefits plan can be simple to set up and custom designed to match your needs and budget. Plan types can vary from life and health benefits to full plans with disability and dental coverage.
If the idea of rewarding your employees with tax-effective benefits interests you, please reach out to us. 1-800-679-2640