Whether you’re a new employer or a seasoned professional, a good compensation and benefits service can help you make the right decisions for your company’s needs. In this article, we’ll discuss the importance of flexible benefit plans, minimum compensation and benefits standards, tax-effective benefits, and the rights of employees to paid statutory holidays. Then, we’ll examine tax-effectiveness of non-taxable benefits.
Flexible benefit plans
Employers have begun incorporating flexible benefit plans into their compensation and benefits services. These plans are highly desired by employees and address the generational divide in the workforce. While most employers offer them exclusively, some carriers are now introducing them for mid-size Chief Legal Officer. However, implementing these plans may not be as straightforward as you might think. To help you get started, consider the following points. First, make sure you know what you’re getting into.
When setting up a flexible benefit plan, consider the types of changes you might need to make. The “life event” requirement means a change in employment status. This means the amount of flex credits assigned to an employee may change. To make sure your plan will be compliant with all the applicable laws and regulations, you need to keep a close tab on your employees’ choices. For example, you might want to make changes to your health insurance plan if you change jobs or have a new baby.
Set out by law
Holidays are days off for employees, and they must be paid their average daily rate on the days that they are off. The amount of pay is calculated based on the days worked in the thirty days prior to the statutory holiday. Employees are also entitled to an average day’s pay on these days, based on the average number of hours worked. To determine the average day’s pay, employees must divide their “total wages” for the 30 days before the statutory holiday by the number of days worked during that time. The average number of days worked includes any paid vacation days.
Although an employee can take a holiday at any time, employers are unlikely to agree to let workers take a holiday without adequate notice. Too many workers can negatively impact the business. To avoid this issue, employees should follow the rules set out by law. This includes letting their employer know which days they wish to take off. In most cases, the required notice must be at least two days prior to the desired holiday date.
Minimum employment standards
The Employment Standards Act sets out minimum workplace standards. While many employers are happy to pay higher wages and provide more benefits than the minimum requirements, contracts cannot be entered into that offer less. Even though an employee may not be able to agree to work for less than the minimum standards, certain exceptions apply. Listed below are some of the exceptions. These standards may not be applicable to you. If you are an employee or a temporary worker, it is important to check the Employment Standards Act.
Under the ESA, employers with a global payroll of are required to meet these standards. Employees who have five years of service are entitled to severance pay after a termination. Calculate your severance pay by multiplying the employee’s regular wages by the number of years you worked at the company, then divide by 12. If you have worked for less than three months, your severance pay will be prorated to compensate you for the partial year.
Tax-effectiveness of non-taxable benefits
In Canada, a common form of taxable benefit is reimbursement of home office equipment, such as computer equipment. These benefits, such as health spending accounts, are similar to flexible spending accounts. In addition to this, gifts under are not included in the yearly limit. However, taxable benefits have extra steps that the employee must complete. Generally, the value of a taxable benefit must be assessed at before they can be claimed as income. Payroll deductions are then required.
Fortunately, most employer-provided benefits in Canada are non-taxable for employees. This means that you can deduct your contribution to such benefits from your employees’ paycheck and reduce your tax burden. However, there are some exceptions to this rule. While employee contributions to group insurance premiums are not taxable, certain group insurance premiums are. In British Columbia, a provincial health plan is also a taxable benefit.