A Strategic Counsel survey confirms that 91 percent of all Canadians would rather have their state sponsored healthcare versus a U.S. style system. While there are definite advantages to this system, Canadians do encounter challenges with health benefits for small business. The provincial Medicare system is cost effective and simple to maintain, but a health spending account can provide access to additional benefits. Regardless of the group health benefits, your Canadian health care costs leave some room for improvement in certain situations.
As you look at creating or reorganizing small business health insurance benefits, it is critical to look at an employee benefit audit in order to comply with changing regulations and best practices. Using the CRA health spending account can be a way of insuring known pricing and benefits for employees based on the employee benefits insurance premiums. Whether you are reevaluating your business insurance premiums, or trying to increase the effectiveness of your small business health plans, some due diligence will allow you to stay competitive in the marketplace, and stay in accordance with CRA regulations.
Adequate group benefits for small business can be a critical add on when you have quality employees that are deserving of an upgrade to the traditional health benefits system. It can also become a key benefit as far as their compensation package is determined. In fact, employee retention may be tied in part to access to increased benefits through your group benefits for small business. Just as salary is not the sole consideration for employees and potential recruits, the cost of additional benefits to employees is much lower than employee turnover or cash incentives.
An employee benefit audit will guide you in structuring packages with additional insurance components, and any additional group benefits deemed necessary. You should insure that your policies and benefits fall under the best practices for your industry, plus you can provide some flexibility with other incentives, such as unpaid leave or floating holidays. You will have to look at your legal obligations when it comes to insurance packages and subsidies, but most salaried employees might expect a baseline level of coverage to be paid or reimbursed by the employer.
Regardless of the group benefits for small business that you elect to incorporate, they may be subject to their own set of government regulations. As you get further along in the process, you may require additional oversight or consulting services to maintain compliance. Fortunately, your efforts will pay off in increased coverage, employee satisfaction, and potentially greater retention.