Submitted by: Submitted by roldanadriel05
Views: 10
Words: 255
Pages: 2
Category: Business and Industry
Date Submitted: 02/09/2016 08:15 AM
To: Employees of the organization
From: Adriel Daniel Roldan, Payroll Supervisor
Date: February, 10 2016
Subject: Group Benefits Plan enhancement
As you all know, we are always striving to increase employee satisfaction in the organization. With this in mind, the company is happy to announce that in two months, we will add to our already stellar group term insurance plan by incorporating both Accidental Death and Dismemberment coverage and Dental coverage. We will be paying for 100% of the Accidental Death and Dismemberment (ADD) coverage. We will also be paying for 50% of the Dental-related insurance coverage.
What this means for your overall net pay is that since the group term life insurance benefits are increasing, the monthly taxable benefits are subject to increase as well. In addition, another good thing about the added coverage is that since we are a company that is located in Ontario, applicable tax premiums (which is around 9%) also contribute to the overall increase in the monthly tax benefit.
On the other hand, since the employer only accounts for 50% of the Dental Insurance coverage, the taxable benefit is only limited to the amount that the employer pays (p3-22). The group term life insurance is also not insurable since it is a non-cash taxable benefit, therefore EI premiums will not be deducted (http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/bnfts/hlth/grp-eng.html).
If you have any questions with regards to this matter, feel free to contact me at any time.