We have more and more clients using HealthCare Spending Accounts (HSA or HCSA) each year.  This is a valuable benefit which has lower administrative costs than traditional benefits, and provides great flexibility to employees and their families.

In order to ensure your employees HSA is best utilized, it makes sense to coordinate usage with spousal benefit plans.  (If you are single, or don’t have spousal benefits, you can ignore this post).  The document below provides a simple example of how this process works.  Depending on the provider (insurer or TPA) you use, claims may be handled in slightly different manners, but the general order of operations shown below apply.

If you’re interested in adding an HSA to your plan, or have one and would like to increase your HSA annual limit, let us know and we can make it happen.  Most plans work on the calendar year, so there is lots of time to discuss before make changes for 2025.  Starting an HSA can be done at almost any time.

I think this is a pretty great and quick read about how to do handle termination correctly and items to keep in mind.

If you’re a Mainstay client, we have HR resources to help you with templates, policy and handbook samples etc. Our new HR ON CALL offering (paid by us) is even more timely and can be used to schedule a call for things like this.

Reach out if you’re not already signed up.

HR Resources

With employers across the country terminating employees en masse, it is important to understand how to approach terminations in a lawful way. This article sets out a five-step guide that any employer or human resource professional can follow when broaching the topic of termination.

1. Identify the “Why”
2. Understand Your Severance Obligations
3. Prepare Termination Documents
4. Conduct the Termination Meeting
5. Issue Payments and the Record of Employment

https://www.mondaq.com/canada/employee-rights-labour-relations/1442378/a-5-step-guide-on-how-to-legally-terminate-an-employee

Good Morning,

I’m excited to let you know that we’ve expanded our free HR offering.  

In addition to access to the HR Toolkit for Small Business – an online self-serve HR portal – we’re now offering an HR on Call service as a pilot over the next 2 months at which time we will assess uptake.

And we’re picking up the tab! It’s completely free for all Mainstay clients.

We recognize that while a DIY HR solution provides value, you sometimes need to get your questions answered by a professional HR Advisor.  

• The HR on Call program will launch Monday March 18 and will be available between 9:00AM and 3:00PM EST.
• You’ll need to sign up for the HR Toolkit to get access to HR on Call.
• Your Program Code is CB10021.

Click here to find out more and sign up.

We are continuously working to add value to our clients and hope you’ll take advantage of this exclusive offer. 

If you have any questions at all, please let me know and I would be happy to help.

Dave

I try and include this reminder in my newsletter and/or blog post each year…so this is a repeat…

As employers prepare T4’s, they can make like a bit easier for staff.  By reporting the employees contributions to the health and dental premium in Box 85, you are helping staff make sure they get the medical Expense Tax Credit (METC) where available.  This avoids employees being audited for proof of contributions (and you having to write out letters for them). 

You can find more about the history of box 85 and it’s intent here… https://www.canadianmoneysaver.ca/blog/box-85-is-my-box

The CRA info is below, or ask your accountant.  https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll/benefits-allowances/private-health-services-plan-premiums.html

We’ve been getting calls and notes from clients about the new Canadian Dental Care Plan (CDCP).  The reason for them generally fall under 2 categories…

1.  How to code T-4’s as s required this time of year.  You can find info on our past blog posts here…

Canada is rolling out its dental care program. Here’s what you need to know

2. Can/Will the CDCP replace our dental benefits?  It us highly unlikely unless you want your employees to have a much reduced (or no) benefit.  So far we have identified a few issues.

1. Most employees will not be eligible until the final phase launching in 2025
2. Many employees will be prevented from using the plan due to the household income test
3. Most dentists are NOT expected to sign up to provide service.  In fact, many of the provincial dental associations are advising not to sign up for the national plan.This means patients may have to search out a new dentist.
4. The funding model has now been released and shows the dentists would be paid up to 40% less than a regular patient, so a big part of the cost is being paid for by dentists, not just the government.  I grabbed a few often used codes and compared to the last ODA fee guide I had (and adjusted for inflation) to check this.

Code 11111 scaling – Private plan would pay ~ $71.63,  CDCP would pay $63.00 –  12% LESS     

Code 02111 x-rays –  Private plan would pay ~ $38.66,  CDCP would pay $29.08 – 25% LESS

Code 21114 filing – Private plan would pay ~ $365.00,  CDCP would pay $209.54 – 41% LESS

Since the pandemic started we’ve had employers (and advisors) reaching out for help in handling remote workers.  This usually starts around a benefits question (if the employee is in another province or country, how does emergency travel work?), and then gets more complicated quickly (taxation, safety, tech issues etc.).

This is still a very complicated issue and several professionals will need to be consulted before allowing employees to work abroad for anything more than a short time.  CRA has provided a bit of clarity in the article below.

If you need assistance with remote workers, please reach out and we can try to assist.

The Canadian Revenue Agency is providing guidance for employers to determine the province of employment for full-time employees who are working remotely.

https://www.benefitscanada.com/news/bencan/cra-guidance-clarifying-how-employers-must-determine-province-of-employment-for-remote-workers/

As a Mainstay Insurance Brokerage client, you get some perks of my work within the industry.  One of those is free attendance at Canadian Group Insurance Brokers educational events (the association I started in 2003). 

We have two events in Vaughan (Hwy 400 and 407 area) coming up in May and June. Both are full day events aimed at benefit advisors, insurers, TPA’s and others in the industry, so you get  “fly on the wall” inside perspective.  These are a great way to increase knowledge, and if you’re in HR even get education credits.

The first, on May 8th, has a number of speakers including a discussion around renewals, and an employer panel sharing their stories, needs and expectations of advisors and insurers.  Details are HERE.

The second, on June 19th, is a smaller workshop on Building and using a benefit plan administration checklist.  As a client you’ve had this checklist explained to you (if not, come out for sure) and had it included in every years renewal package.  This workshop gets into the legal cases, taxation issues, areas of risk and employment/HR issues that employers see every day.  Details are HERE.

If either of these events are of interest and you can spend the day with us, please let me know and I’ll book a spot for you free of charge.

Special Note:  If you have HR consultants, friends, and/or business associates (best if they have a plan or want to start one) that may want to learn more about benefits, please feel free to share the info and have them reach out to me.  We find many are trying to find an advisor that specializes in benefits and don’t know where to turn.  I may not add too many new clients a year, but the room will have some great ones that can help, if I can’t.