During periods of unemployment or while on maternity or parental leave, you are entitled to receive some income, depending on your earnings and the period of time over which you contributed. To further get your creative juices flowing, here are a few examples of interesting employee benefits: Employee benefits are more than just a perk; they can be key to the success of a business. According to a 2014 survey conducted by Arthur J. Gallagher & Company, the number one challenge for US employers when it comes to employee benefits is controlling the cost of benefits programs. Both you and your employee will have to pay into this program. Further information on Registered Pension Plan, proposed regulatory amendments and changes to pension investment rules can be accessed at our Pension and Benefits Law blog. In fact, retirement is becoming more and more important to young Canadians amidst uncertainty around whether they’ll be able to afford to retire on their own. Things can get a bit complicated. The costs of employee benefits will usually average about 15% of payroll in a small company, or as high as 30% in a larger one.1 Each potential benefit should be considered and defined carefully. These benefits vary widely among employers and in general, there is no legislation which regulates the provision of benefits under these plans. In addition, the interpretation of registered pension plan documents and legislation is governed by the common law (except in the province of Québec as detailed below). An employee benefits package is much more than a bunch of perks. These are the benefits that an employer is required to provide by provincial or federal law. The current rate for … Read on for more insights on the advantages of flexible benefits plans. Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. And with the retirement age shifting back and with people living longer lives, employee benefits programs may be used more extensively and for longer periods of time. This post covers the most popular employee benefits, starting with these seven, which are mandatory for all businesses. Another type of retirement savings arrangement is the pooled registered pension plan (PRPP) (known as voluntary retirement savings plans in Quebec). Subject to one small exception in Québec (see below), there is currently no legislative requirement for employers to establish or participate in any type of retirement plan for the benefit of their employees (i.e., it is a voluntary system). Besides making sure that your business is compliant with all mandatory benefits and employment standards within Canada, there are best practices that you can use to create a compelling benefits package for your employees. Canada V5H 3Z7. As a worker for an Ontario employer, you are entitled to income during periods of time when you are absent from work due to an injury that occurred while working for your employer. For example, employers who provide free board and/or lodging to employees must calculate the fair market value of said lodging and add it to their employees’ income. Nevertheless, while such minimum standards legislation is not identical and important differences do exist, the minimum standards legislation generally imposes similar requirements in respect of such things as eligibility for membership; locking in; the need for regulator consent for pension plan asset transfers; duties of plan sponsors and administrators; and pension plan investments. In Canada, employees who are infected with the coronavirus due to the nature of, or in the course of, their employment (e.g., while travelling to an affected area for business) may be entitled to workers’ compensation benefits. The second category can be further divided between the following sub-categories: (a) registered pension plans, (b) other registered retirement arrangements and (c) unregistered retirement plans (typically supplemental plans). As an employer, your responsibilities include determining whether certain benefits are taxable, calculating their value, making the appropriate payroll deductions and filing an information return. Step one is to make sure the features an insurance agency can provide will actually benefit your employees. “There is a tremendous opportunity to better manage and make benefits plans more relevant by understanding these demographic shifts and recalibrating as necessary,” he stated. Subscribe to our monthly email roundup of helpful HR resources. That said, Lindenberg did see a bit of a silver lining. For example, the maximum benefit accrual rate is capped at 2% and the maximum annual DB limit in 2018 is $2,944.44 per year of service. Clearly, more strategic planning is needed to help mitigate the costs of benefits plans. The Canadian Pension Plan is a social insurance program that is set in place to ensure that each Canadian will have a pension when they retire. Workers compensation. In addition to complying with applicable minimum standards pension legislation, a pension plan must be registered under the federal ITA in order to qualify for preferential tax treatment.