What are they?
Employee benefits, sometimes referred to as “benefits in kind,” “perks,” “incentives” or “fringe benefits,” consist of any grouping of non-wage compensation provided by employers to their employees.
Employers are not required to provide employee benefit plans. However, if offered, these types of plans will come in addition to the employee’s usual salary or wage.
Firms that choose to offer competitive, comprehensive employee benefit plans very often find these incentives represent one of the most important factors in their ability to retain existing staff as well as attract skilled new ones.
Mmmm, what’s that on your plate?
Each benefit package varies broadly from one employer to another because of the unique permutations achieved during the selection of specific bundles of benefits that any employer may wish to offer his or her staff. Think of it like a smörgåsbord or buffet table, offering a variety of tempting foods from which diners choose – your plate will inevitably be loaded with different foods than mine.
Examples of some of the items that may be included in an employee benefit plan are:
- group insurance (health, dental, vision, life, accidental death or dismemberment, etc.)
- disability income protection
- long-term care plans
- retirement benefits
- sick leave
- vacation or sabbatical pay
- profit sharing
- education funding
- professional fee reimbursement
- other items that might be particular to the employer’s industry or specialization.
If you try to sit, I’ll tax your seat, ’cause I’m the taxman
Some employee benefits, such as registered pension plans or the premiums on insurance, pose tax implications for employees and/or employers, depending on federal laws and rules in different provincial jurisdictions. It is important to seek experienced, professional advice on all such matters.
Okay, let’s rock and roll
If you are interested in implementing customized coverage for the employees at your firm, please call us today and request a consultation and quote – as always, no obligation!