Assignment 1 - #2

MEMO TO: ALL STAFF DATE: SEPTEMBER 14 TH , 2023 RE: ENHANCED GROUP BENEFITS We are pleased to announce that our organization is going to start offering enhanced benefits for our employees, including Accidental Death and Dismemberment as well as Vision Coverage starting in two months time. To show support for our employees and their families, we will be sharing the cost of the premiums equally with you, the employee, 50/50, so that each is only paying 50% of the premium. These new premiums will impact your net pay slightly, and I will explain the breakdown of each benefit for you as follows: AD&D: The employer contribution to the premium, is considered a non-cash taxable benefit for you, as a result, the employer paid premiums plus the 7% RST we pay here in Manitoba are considered pensionable for C/QPP contributions and federal and provincial income taxes. The CRA states that cash and non cash taxable benefits are subject to CPP deductions ( arc/formspubs/pub/t4001/t4001-22e.pdf , pg. 15) so you, the employee, will be paying taxes on the employer's portion of the premium which will result in a decrease from your net pay. The CRA Vision Coverage: The employer paid premium for private health insurance plans for all non-Quebec employees is the value of the premium, plus the tax on insurance premiums, and is considered a non- taxable benefit to you, the employee. (PF1, 3-25) So the 50% vision care premium paid by the employer is not taxable and is not subject to statutory deductions. This benefit will not affect your net pay. So as a bottom line, only the Accidental Death and Dismemberment Benefit is affecting your net pay and you are gaining priceless peace of mind at very little cost to you. We hope you will see the value in these new benefits as we do and know that the organization wants to invest in their employees to help support and appreciate them. We will be hosting a Q&A session at a date to be determined where you can bring any questions or concerns about these new benefits to light. Sincerely, Kristy Hoare Payroll Manager
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