What Every Owner of a Small Business Should Know
The employment market has changed and is now favoring the worker. After the pandemic, more jobs will fill than individuals willing to fill the positions.
What is this sign for the typical small business owner? In simple terms, finding suitable candidates for the jobs that require filling is becoming increasingly difficult.
There are a few ways for businesses to get around this:
1: The increase in salaries.
2: Give better employee benefits plans.
Higher salaries certainly attract top talent. However, they can also mean more taxes on wages, which could be significant in Ottawa.
However, the group benefits plan’s cost is a tax-deductible expense for the business. It does not count as tax-deductible employee benefits!
Why Provide Coverage for Group Benefits?
There are many advantages to offering your employees a comprehensive group health insurance plan. The list below only provides a few of these:
- A competitive benefits program will help you attract and keep skilled and reliable employees in your company.
- Benefits plans don’t have to be complex. They can be easy to create and manage. There is now a portal to group benefits for clients who are already members; further details on this will be forthcoming.
- Benefit plans make you appear as an employer who is caring and involved. They will also attract employees with a comprehensive view of your business, reducing employee turnover and training costs.
- A comprehensive employee benefits program will give peace of mind to your employees since they do not have to think about unexpected medical costs.
- The cost of group insurance is tax-deductible for the employer.
- Benefit plan reimbursements get considered to be taxable income for the employee.
How Many Employees Do I Require to Have a Group Benefits Plan?
Ideally, three plus employees would be required. But, there are other options to have at least two employees.
Owners and employees who work full time can join in many instances, and contract employees may also add.
Smaller Businesses and Group Benefits
If you run an unassuming business, cannot pay for an insurance policy for your group and are unsure what to do, there are options for you.
Individual health insurance plans get generally considered more affordable than group insurance plans, but this comes with a price. For instance, many personal dental and health plans are medically underwritten and have significantly lower maximums overall.
Conclusion
Please get in touch with Ottawa Life Insurance at (613) 454-1424 or email at info@ottawa-lifeinsurance.ca if you need some guidance on group benefits. Our expert Ottawa insurance representatives are available to assist you!
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