As a business owner striving for success, making strategic decisions that save money while remaining competitive is paramount. One critical aspect of maintaining your competitive edge is retaining key employees, often through incentives such as bonuses or raises. While straightforward, rewarding good work with a raise has hidden costs and reduced benefits due to payroll deductions and taxes.
When you give an employee a raise, the gross amount you offer is diminished by mandatory payroll deductions such as CPP, EI, and vacation pay. Moreover, federal and provincial taxes further reduce the net value of the raise for your employee. This means a substantial portion of their raise never actually reaches their pockets.
On the other hand, offering a group benefits plan presents a more tax-effective alternative for both you and your employees. Group benefits can include health, dental, life, and disability insurance, providing comprehensive financial and medical peace of mind to employees and their families. Health and dental benefits are tax-free for employees, and your contributions to these plans are tax-deductible.
Implementing a group benefits plan is a win-win situation. Not only does it help retain valued staff, but it also makes your company more attractive to prospective employees. A customized benefits plan aligned with your needs and budget can play a significant role in appealing to top talent.
At EasyInsure, we understand that maintaining a happy and healthy workforce is essential for your business’s prosperity. Our team can help you explore and implement a benefits plan that meets your specific requirements.
Whether you need basic life and health benefits or comprehensive packages with disability and dental coverage, we can design a plan that works for you.
Interested in offering tax-effective benefits that reward your employees meaningfully? Reach out to EasyInsure today at 1-800-679-2640 or email:
info@easyinsure.ca.