Still confused about the TFSA? Wonder if you should encourage your employees to contribute to one as well as an RRSP? You are not alone. Perhaps a look at some pros and cons can help give some clarity.   A TFSA is a Tax Free Savings Account to which any Canadian 18 years or older can contribute a maximum of $5,000 per year.    ·          There is no requirement to have earned income to contribute to a Tax-Free Savings Account. This is perfect for spousal plans or for students. ·          There is no tax deduction for contributing to a TFSA; however, the returns generated on investments (interest, dividends or...

What should you be thinking about if your employee has a Long Term Disability (LTD)? And, more importantly, what should you be thinking about before they reach the transition from a short term to a long term disability?   Most insured plans today tailor their LTD programs to coincide with the federal programs for EI and CPP sickness/disability benefits. Once an employee has been unable to work for 17 weeks they would transition from a short term to a long term disability.   As soon as you are aware of a possible long term disability case then you need to do some planning in advance. Here are some...

A clearance letter/certificate is possibly one of the most important documents regarding workers’ compensation coverage. The perceived time and effort required to obtain this document often makes this an overlooked process.   Many subcontractors can have workers’ compensation coverage and accounts. This does not mean that their account is in “good standing” and all premiums have been paid. Once a subcontractor or any employees of the subcontractor have been injured, you will be held liable for the injury/illness that has occurred if you did not obtain a clearance prior to work commencement. This document is too important to be considered a hindrance when an employer can be left...

In these challenging times we are often asked how it’s possible to cut benefits costs. Most employers use cutting salaries as a last resort, preferring not to affect regular net pays and turn to benefits to help reduce expenses.   If you have to cut, what exactly should you cut?   Here’s a quick reference chart which addresses a few main areas that you could consider and some of the pros and cons in each case:       Pros Cons Increase employee’s share of Benefits Costs ·         Immediate cost saving ·         Coverage is not affected ·         Change can easily be reversed ·         This affects the employees’ net...

There’s a lot of discussion in the news about a Supplemental Pension Plan. Late last year the provinces of Alberta and British Columbia announced a pension plan initiative which would allow employees not currently part of a pension plan access to an alternative. “Alberta/British Columbia Pension Plan (ABC Plan)   The ABC Plan will be a simple defined contribution design with matching employee and employer contribution rates, immediate vesting of contributions, and flexibility to accommodate unmatched employer or employee contributions. All employers and workers would be automatically enrolled in the plan, but would be able to opt out of participation. It is recommended that governance and administration of...