While no minimum standards legislation applies to Group RRSP, DPSPs and TFSAs, there are guidelines published by regulators overseeing the financial services sectors, which may apply and set the standard to which such plans should be administered. When you hire an employee, you’re required by law to pay the provincial minimum wage to that employee. An employee benefits package is any non-salary compensation that is provided by a company for its employees. Here’s a basic overview of employee benefits in Canada, including a look at legislation, best practices, and examples of a few companies with interesting policies. Before you develop a benefits package, take the time to understand: Competitive employee benefits commonly include: Employee benefits packages are becoming increasingly complex. In Canada, employers are required to provide at least two weeks of paid vacation time to an employee per year. “As a consequence, age-rated benefits will cost more, and utilization in the areas of health and disability will increase.”. The Canadian worker’s compensation program is set in place so that an employee doesn’t have to deal with financial hardships while they are unemployed due to work-related injuries. Government sponsored retirement benefit plans are considered as one of the three pillars supporting retirement income in Canada – the other two being employer sponsored retirement plans (discussed below) and the individual’s own retirement savings. Read on for more insights on the advantages of flexible benefits plans. Employers are required to offer a minimum of 17 weeks for parental leave. It’s important to be careful, as trying to cut costs the wrong way can actually end up costing your business much more in the long run.The main thing to keep in mind is that some benefits are taxable and/or must be added to employee income, while others are not. Employer sponsored retirement plans are often presented to employees in this context. Our clients include industry and business leaders in all segments of the market and at various stages in the growth of their businesses. Social Security Tax. It’s not uncommon for a business to provide three to four weeks of paid vacation time per year. There is more flexibility than ever before. To access the Human Resources Directory please visit our HR Contacts page, College of Engineering & Physical Sciences, College of Social & Applied Human Sciences, Gordon S. Lang School of Business & Economics, Human Resources Management System Project, E-Pay Statement & My Retirement Portal Help, Learning & Development Event Registration Calendar. Employee benefits and benefits packages: What Ontario employers should know Benefits are an important part of an employeescompensationpackage. These benefits include: While it’s important for Ontario employers to offer a competitive benefits package to attract and retain quality employees, a full suite of benefits can be cost-prohibitive for a startup. There are generally nine recognized statutory holidays per year in Canada. Offering additional wellness programs can help encourage employees to get proactive about their health. One of the ways that you can motivate your employees is by offering a performance bonus on a monthly or quarterly basis. 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. Employers may also provide a non-registered plan to receive defined contribution amounts in excess of amounts permitted under the ITA limits in respect of registered plans. This is an appealing perk to many employees because it helps to maintain a work-life balance. Note The GST/HST rates used in this guide are based on the current rates set under the Excise Tax Act and its regulations for taxable benefits provided in … An employer may establish a supplemental plan for certain employees to “top-up” their pension plan benefits. These plans are also defined contribution arrangements, but individuals’ assets are pooled, so a PRPP should be able to offer investment and savings opportunities at lower administration costs. Minimum requirements of Government-mandated employee benefits include participation in Employment Insurance (EI), Canada Pension Plan (CPP) or the Quebec Pension Plan (QPP), Worker’s Compensation (WC) or Workplace Safety and Insurance Board (WSIB). If your employees like to shop at your store, then you may want to provide them with some kind of employee discount. Each province and industry will have a different minimum wage, and the employer is responsible for following all applicable laws. Related: Adding an Employee Assistance Program? For more information, go to Remitting GST/HST on employee benefits or see Chapter 5 of Guide T4130, Employers’ Guide Taxable Benefits and Allowances. As an employer, you also have to make Canada Pension Plan (CPP) contributions, employment insurance premiums, and other expenses. Jonathan Marin, Julien Ranger. There may also be disability, survivor and orphan benefits payable from the plan. Many employers design their retirement plan so as to integrate the benefits that employees will receive under the CPP/QPP and the benefits payable under the employer’s retirement plan (i.e. There’s little point in having a lot of extra benefits while the essentials aren’t being covered adequately. This is a federal insurance program that provides benefits to unemployed individuals. Thus, these employer plans generally are not (as such) subject to minimum standards legislation. Accordingly, the terms of the plan documents, as interpreted through the common law, may prevail to provide greater rights to members than those provided for under pension legislation or otherwise govern the employer’s rights or responsibilities with respect to the plan. However, it doesn't cover things like dental, vision, and prescriptions. “It’s been well documented that Canada’s population is aging, so it stands to reason that most workforces are getting older,” he wrote. All workers in Canada between the ages of 18 and 65 are required to contribute towards an income replacement program payable from the federal government. Both you and your employee will have to pay into this program. These plans can include: This is one area that every potential employee will look at before they agree to work at your company. The legal framework that overlays these employee benefit plans depends on the type of employee benefit plan, whether federal or provincial governments have jurisdiction over the employment relationship and the province in which the individual is employed. 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. offer their employees. Adding an Employee Assistance Program? Canada V5H 3Z7. 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. These benefits are only offered at the discretion of the 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. Let us help you stay up to date. company would find out what each of these benefits are and what Increased contributions will be phased in over a seven-year period commencing in 2019. Employee benefits, also known as perks or fringe benefits, are provided to employees over and above salaries and wages. No employee or employer contributions are required for either of OAS or GIS. Paid public holidays. When your business is in the early stages, it’s even more critical that you hire candidates that are well-qualified. Ask employees to prioritise the perks that are most valuable to them. Both can provide peace of mind for employees. Canada Pension Plan, Old Age Security pension and related benefits, the Canadian retirement income calculator and retirement planning. All workers in Canada between the ages of 18 and 65 are required to contribute towards their retirement payable from the federal government pension plan. Taking a look at Canada, Brian Lindenberg drew attention to a, back in 2013 – the changing demographics of the workforce. That said, Lindenberg did see a bit of a silver lining. Employee discounts < Previous Post Next Post > Jon Marin and Julien Ranger are both members of our department. Communicate clearly via multiple channels so there’s no confusion as to the benefits employees are entitled to and how to claim them. Here’s what you need to know. Many business owners make their benefits packages more appealing by giving extra vacation time to their employees.