Employee Benefits in Alberta: What Employers and Employees Should Know
September often feels like a reset button for businesses.
Summer holidays are winding down, teams are getting back into regular routines, businesses are reviewing their goals for the final months of the year, and many employers are thinking ahead to hiring, retention and next year's planning.
It is also a great time to take a closer look at something that can have a meaningful impact on both employers and employees: group benefits.
A group benefits plan is more than a line item in a business budget. For employees, it can provide access to health and dental coverage and other forms of financial protection. For employers, it can be an important part of the overall compensation package they offer their people.
But there is no single benefits package that works for every Alberta business.
The right plan depends on the business, the employees, the budget and the goals behind the benefits program.
What Are Employee Benefits?
Employee benefits are forms of compensation or services provided by an employer in addition to regular wages or salary.
Depending on the plan, workplace benefits can include things such as health and dental coverage, disability or life insurance, retirement savings programs and other benefit arrangements.
At Brightview Financial Services, employer benefit solutions include:
Employee health and dental coverage
Healthcare Spending Accounts
Cost Plus Plans
Group RRSPs
Buy/Sell Coverage for business owners
Brightview's approach is to help employers find a plan that addresses their employees' needs while fitting the organization's circumstances.
You can learn more about Brightview's employer benefits services here:
https://www.brightviewfinancial.ca/employer-benefits
Why Do Group Benefits Matter to Employers?
For a business owner, it can be tempting to think about employee benefits primarily as an expense.
That is understandable. Every business has a budget, and benefit premiums are one of many costs an employer has to consider.
But benefits are also part of the larger employment package you're offering.
When someone considers a job, they are not necessarily looking only at the number on the salary offer. The overall compensation package can include health coverage, dental coverage, retirement savings opportunities and other benefits.
That makes it worth asking a bigger question:
What does our benefits package say about the kind of workplace we are building?
There is no universal answer.
A small business with five employees may have very different needs from an organization with 100 employees. A young workforce may have different priorities from a workforce with many employees approaching retirement. A company trying to attract specialized professionals may have different goals from a business primarily focused on keeping benefit costs predictable.
The point is not to have the biggest benefits package.
The point is to have a benefits strategy that makes sense for your business.
What Should an Alberta Employer Consider When Reviewing a Benefits Plan?
If your business already has a group benefits plan, September can be a useful time to review it.
Start with a few simple questions.
1. Has your workforce changed?
If you've hired several new employees, expanded your business or experienced significant staff turnover, your original benefits strategy may no longer reflect your workforce.
Consider who your employees are today, not who they were when the plan was first established.
2. Are employees actually using the benefits?
A benefits plan has more value when employees understand what is available to them and how to use it.
If your employees regularly ask questions about coverage, limits or eligible expenses, that may be a sign that a benefits review or education session would be worthwhile.
3. Does the plan fit your current budget?
Businesses change.
Revenue changes. Staffing changes. Expenses change.
Your benefits plan should be reviewed alongside the broader financial picture of the business.
4. Are there benefit options you haven't considered?
Brightview offers several different employer benefit solutions, including Healthcare Spending Accounts, Cost Plus Plans and Group RRSPs. These arrangements can serve different purposes, so it is worth understanding how each works before deciding what belongs in your plan.
5. Do you understand the tax treatment?
This is an important one.
Not every employer-provided benefit is treated the same way for tax purposes.
The Canada Revenue Agency explains that the tax treatment of employee benefits depends on the specific type of benefit and circumstances. For example, contributions to a qualifying Private Health Services Plan can generally be non-taxable to employees, while certain insurance benefits can be taxable.
This is one reason employers should not assume that two different benefit plans have identical tax consequences.
The CRA's current Employers' Guide to Taxable Benefits and Allowances provides detailed information for employers about determining whether benefits are taxable, calculating their value and reporting them.
What Should Employees Know About Their Benefits?
Employees have a role in the conversation, too.
If you have a group benefits plan through your employer, September is a good time to actually find out what is included.
You don't have to memorize your benefits booklet.
But you should know where to find the answers.
Consider looking into:
What health expenses are covered?
What dental services are covered?
Are there annual or lifetime limits?
Is there a Healthcare Spending Account?
Is there life or disability coverage?
Is there a retirement savings component?
What happens to your coverage if you leave your employer?
How do you submit a claim?
Who should you contact when you have questions?
And don't assume your benefits are identical to someone else's.
Two employers can offer completely different benefit plans. Your specific coverage is determined by the plan your employer has established and the applicable policy or plan documents.
That is why understanding your benefits is much more useful than comparing them to your neighbour's.
Healthcare Spending Accounts and Cost Plus Plans
Two terms that employees and business owners may come across are Healthcare Spending Accounts and Cost Plus Plans.
Brightview offers both as employer benefit solutions.
These arrangements can provide employers with additional ways to structure coverage for eligible medical and dental expenses.
The important word here is eligible.
What qualifies, how much can be claimed, and how the arrangement is administered depends on the specific plan.
That is why these options are worth discussing with a benefits professional rather than assuming they work exactly like a traditional group insurance plan.
Group RRSPs Can Add Another Piece to the Benefits Conversation
Employee benefits don't have to stop at health and dental.
Brightview also offers Group RRSP solutions designed to help employees save for retirement.
For employers, this can add a retirement savings component to an overall compensation package.
For employees, it can create an opportunity to save through a workplace arrangement.
Again, the details matter. Employer contributions, employee contributions and the tax treatment of different arrangements can vary, so employees should understand the specific plan their employer offers.
The Canada Revenue Agency provides specific rules regarding employer contributions to savings and pension plans, including when contributions are considered taxable benefits.
What About Business Owners?
Employee benefits are only one part of the conversation for business owners.
Business owners also need to think about what happens if one of the people essential to the business can no longer participate.
Brightview offers Buy/Sell Coverage using life insurance and illness coverage as part of its employer benefit services.
This is particularly relevant for businesses with multiple owners who need to think through what could happen if an owner dies or becomes seriously ill.
It may not be the first conversation that comes to mind when you're starting or growing a business.
It is still an important one.
September Is a Good Time for a Benefits Review
You don't need a dramatic reason to review your group benefits plan.
Sometimes the best reason is simply that another year has passed.
Your business may have changed.
Your employees may have changed.
Your budget may have changed.
And your benefits plan may need to change with them.
At Brightview Financial Services, the goal is not simply to put a benefits package in place and walk away. Their approach focuses on education and helping employers understand the options available to them. Brightview describes its broader approach as educational, honest and specialized.
If you are an Alberta business owner, ask yourself:
Does our current employee benefits plan still make sense for the business we are today?
If you are an employee:
Do you actually know what your benefits plan includes?
Those two questions are a pretty good place to start.
Talk to Brightview Financial Services
Brightview Financial Services works with businesses and individuals to help them understand their insurance and investment options.
If you are reviewing your employee benefits plan, considering a new group benefits package or simply want to understand what's available, Brightview can help you explore your options.
Brightview Financial Services
4916 50th Ave
Beaumont, Alberta
780-929-8734
Learn more about Employer Benefits
Contact Brightview Financial Services
This article is intended for general educational purposes and is not tax, legal or financial advice. Benefit coverage and tax treatment depend on the specific plan and individual circumstances. For current tax information, consult the Canada Revenue Agency or a qualified tax professional.
