Employee Benefit Coverage
Employers provide benefits to attract, motivate and retain employees. This is because benefits can influence the health and choices that employees make. The two primary categories of employee benefits are health care and income replacement.
Health care benefits (drug, dental, vision, paramedical, hospital, ambulance, hearing, medical, and travel insurance) have favourable tax treatment as well as improve the physical and psychological wellbeing of employees.
Income replacement benefits (attendance management, sick-days, Supplemental Employment Insurance Sick Benefits (SUB), short-term disability insurance, long-term disability insurance, pension (RPP), retirement savings (RRSP), deferred profit sharing (DPSP), tax-free savings (TFSA), and life insurance) provide for an orderly transition out of the workforce. The erosion of public pensions and elimination of mandatory retirement age has made it critical for employers to facilitate the voluntary retirement of aging workers.