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YXE Benefits Provides the Chambers Plan Group Benefits in Saskatoon > Blog > Group Retirement Employee Benefits

The Chambers Plan Group Retirement Savings Plan In Saskatoon

YXE Benefits offers the simple, stable, smart group benefits choice for Saskatoon businesses; combining accessibility, flexibility and the stability of pooled benefits. Saskatoon companies choose the Chambers group plan because it offers unsurpassed value & outstanding customer service. The Chambers plan group benefits are for Saskatoon Chamber members. In our latest post, we share information on The Chambers plan group retirement savings plan.

The Chambers Plan offers an innovative group retirement savings plan designed to help Saskatoon businesses like yours be competitive and assist in your employees’ future financial needs.

Stay Competitive With a Group Retirement Savings Plan

Submit contributions
Access support tools and reports that are easy to read and understand.

Having access to our online retirement planning tools, statements, and educational materials, Chambers Plan Group Retirement Solution works well with your company’s overall compensation approach by enhancing the future financial security of your employees and their families. Implementing a comprehensive retirement savings plan will help you to stand out when recruiting and retaining employees and create a sense of long-term loyalty and pride in your team.

Benefits to Your Employees

Low fees. The investment management fees (IMFs) in a group plan are typically lower than the management expense ratio fees charged by individual mutual funds and banks.
Immediate tax savings. Employees see immediate tax savings with the group RRSP if contributions are deducted from their gross pay, which means they pay income tax only on the reduced amount.
Simple online administration:
- Fast and easy online enrolment
- A secure website featuring comprehensive education and support tools
- Ongoing online administrative support, including access to live support through our customer service centre and from licensed financial education specialists
- An annual statement that is mailed to the employee’s home, summarizing account activity

See related YXE Benefits posts on group benefits.

We encourage you to connect with us on our Saskatoon social media platforms on Facebook, Twitter & Linkedin.

‘Join the Group- It’s Time To Benefit’
www.yxebenefits.ca

Health Insurance Benefits and Taxation

YXE Benefits offers the simple, stable, smart choice for Saskatoon businesses; combining accessibility, flexibility and the stability of pooled benefits. Saskatoon companies choose the Chambers group plan because it offers unsurpassed value & outstanding customer service. The Chambers plan group benefits are for Chamber members. In our latest post, we discuss health insurance benefits and taxation.

Health Insurance Benefits and Taxation

When you get your T4 slip in January or February, you may wonder why the employment income reported in Box 14 is higher than the salary or wages you earned for the year. That’s because your employer must report premiums it pays for certain group benefits and the value of some perks as a taxable benefit, and you must pay taxes on those amounts.

In addition, both you and your employer have to make Canada Pension Plan contributions on the value of all taxable benefits plus Employment Insurance contributions on taxable benefits you receive in cash.

Here is how the Canada Revenue Agency (CRA) treats employee benefits for tax purposes:

1. Group life/health premiums

Employer-paid premiums for group life insurance, dependent life insurance, accident insurance and critical illness insurance are taxable benefits and the amounts paid on your behalf will be added to your taxable income. You may also be able to claim health insurance premiums you paid as a tax credit.

2. Group short- or long-term disability

Employer-paid short-term disability (STD) or long-term disability (LTD) premiums are not taxable benefits. However, when your employer pays any amount towards your STD or LTD coverage, any benefits you may collect in future will be taxable.

3. Pension plan/Group Registered Retirement Savings Plan

Your employer’s contributions to a registered pension plan on your behalf are not taxable. However, when your employer contributes to or matches your group RRSP contributions, this amount is viewed as taxable earnings that increase your income. If you notify your employer that you have sufficient RRSP contribution room, your employer may deposit the full amount into your RRSP account without any withholding tax being deducted. And as long as you have RRSP contribution room, you can deduct the total amount contributed to your RRSP in the year of contribution or a future year. Be aware, however, that your employer’s contribution to your pension reduces your RRSP contribution room the following year, via the “pension adjustment” that is reported on your T4 and that the CRA notifies you about every year.

We encourage you to connect with us on our Saskatoon social media platforms on Facebook, Twitter & Linkedin.

‘Join the Group- It’s Time To Benefit’
www.yxebenefits.ca

Maximize Your Employee Group Benefits in Saskatoon

The YXE Benefits is the simple, stable, smart choice for Saskatoon businesses; combining accessibility, flexibility and the stability of pooled benefits. Saskatoon companies choose the group plan because it offers unsurpassed value & outstanding customer service. The Chambers plan group benefits are for Chamber members. In our latest post, we discuss how to maximize your employee group benefits.

Maximize Your Group Benefits

It is equally important to report when your employees receive a raise or cost-of-living increase.

Long Term Disability, Short Term Disability and Life Insurance are benefits that are typically calculated as a percentage of an employee’s salary. If a discrepancy exists between an employee’s actual earnings and what is reported by your firm, the lesser of the two amounts will be paid in accordance with your plan’s policy. That means, in the event of a claim, your employees could receive less than they are eligible for, which could raise liability concerns for your company.

Imagine this scenario.

Jane has worked for ABC firm in Saskatoon for ten years when she is involved in a serious car accident. Luckily, Jane holds a short-term disability benefit through her employee group benefit plan. Jane’s salary, as indicated by her most recent T-4, was $49,000 a year, which makes her eligible for her plan’s disability benefit of $630 per week. However, the salary information on file for Jane’s benefit plan indicated her income was $40,000. Premiums had been billed and paid based on a salary of $40,000, meaning Jane’s insured benefit at 66.67% of salary was only $513 per week, almost $120 less than what she believes she is eligible to be receiving.

By providing notification of Jane’s salary change at the time of increase, the above situation could have been avoided. In order to assist employers, the Chambers of Commerce Group Insurance Plan® sends a salary update form to each insured firm every January as a reminder. Report your employee’s salary changes and maximize their benefits!

‘Join the Group- It’s Time To Benefit’
www.yxebenefits.ca

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Health Insurance Benefits and Taxation

Health Insurance Benefits and Taxation

1. Group life/health premiums

2. Group short- or long-term disability

3. Pension plan/Group Registered Retirement Savings Plan

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