It’s that time of year again. If you are like most employers, you want to show your appreciation to your employees for the success your business has had over the past year. But how much is enough? Will your employees be offended with a few hundred dollars? Will they laugh at a $0.50/hour wage increase?

Hidden Costs
Giving your employees a year-end bonus or salary increase means the employee must contribute to their portion of CPP/QPP, EI and pay income tax on that additional income. So, that $1000 bonus might only yield $500 when all is said and done. Why not consider the gift that keeps on giving and get more out of each compensation dollar by implementing a benefits plan?

Employee Benefits
As an alternative to a year-end bonus or salary increase, you might consider an employee benefits plan for your employees. Because the benefits received by your employee are non-taxable, that $1000 you put towards the premium for a health and dental plan all goes to the plan and benefits the employee. Further, it is likely that your employees are already incurring expenses for dental, vision and prescription drugs and are paying out-of-pocket with after-tax dollars. Implementing a benefits plan will pay those expenses with pre-tax dollars and could save your employees money.

Not only is a benefits plan a great way to compensate your employees in a tax effective manner, employee satisfaction is very high. Let Blinkhorn Benefits Group show you some affordable solutions to implement a plan for your employees.