Is Cash King? Why Group Benefits Plans are the Real Perks of the Job.

In Canada, group benefits plans are a popular way for employers to provide their employees with additional compensation beyond just their salary or wages. Group benefits plans offer a range of benefits, such as health and dental insurance, life and disability insurance, and retirement savings plans. While some employers may opt to simply give their employees more money instead of offering group benefits plans, there are several reasons why group benefits plans are a better option for both employers and employees.

First and foremost, group benefits plans offer a range of benefits that employees may not be able to afford on their own. For example, dental and vision care can be quite expensive, but with a group benefits plan, employees can access these services at a lower cost. This not only helps employees maintain their health, but it can also reduce the financial burden on employees and their families.

Another advantage of group benefits plans is that they can help employers attract and retain top talent. In a competitive job market, offering a comprehensive benefits package can make a significant difference in attracting and retaining employees. Employees are more likely to stay with a company that offers a range of benefits that meet their needs and those of their families. By offering group benefits plans, employers can demonstrate their commitment to their employees’ well-being and create a positive workplace culture.

In addition, group benefits plans can be more cost-effective for both employers and employees. Employers can negotiate better rates for group benefits plans since they are purchasing coverage for a larger group of employees. As a result, employees can access coverage at a lower cost than if they were to purchase individual policies. Moreover, group benefits plans can be a tax-effective way for employees to save for retirement, as contributions are made on a pre-tax basis.

Group benefits plans can also provide a level of security and peace of mind for employees. Life and disability insurance can offer financial protection for employees and their families in the event of unexpected illness, injury, or death. Having this coverage can reduce the stress and anxiety that employees may feel in these situations and allow them to focus on their recovery or grieving process.

Finally, offering group benefits plans has significant tax advantages for employees as health and dental coverage premiums are non-taxable in Canada. When employers choose to pay employees a “bonus” in the form of higher wages or salary for employees, the total amount is subject to statutory deductions and taxes, resulting in less purchasing power.

In conclusion, group benefits plans offer a range of benefits for both employers and employees in Canada. By providing access to affordable health and dental care, retirement savings plans, life and disability insurance, and other benefits, employers can attract and retain top talent, create a positive workplace culture, and demonstrate their commitment to their employees’ well-being. Additionally, group benefits plans can be more cost-effective than simply giving employees more money, provide a level of security and peace of mind.