Flexwell

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Tax Smart Benefit Program

Our programs are meticulously designed to adhere to CRA tax regulations, aligning with the government’s aim to incentivize employers to sponsor benefit plans. Flexwell strategically structures employer contributions to achieve a balance that supports employer deductions without imposing undue tax burdens on employees. This approach ensures compliance with tax rules while fostering an advantageous environment for both employers and their workforce.

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Core Essential Risk Protection Benefits

Employers have the flexibility to choose core risk products as part of their benefits plan. Many employees may not fully understand the significance of risk protection programs, and acquiring them individually can pose challenges. These programs play a pivotal role in providing essential support in instances where employees are unable to work due to illness or injury. Moreover, they extend coverage for life and critical illness, with the primary aim of offering assistance during challenging and traumatic events. Allocating employee contributions to fund these invaluable benefits ensures that the benefits remain tax-free, guaranteeing comprehensive coverage precisely when it is needed most.

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How Is Flexwell Different From The Other “Flex Benefits”

Flexwell leverages tax rules to optimize the benefits offered by a benefits program. Many “flexible” benefit plans only provide a limited selection of wellness programs or predetermined wellness options. However, our Flexwell programs encompass all available wellness programs based on the total number of employees, allowing your company to tailor its program to three options that fit its specific needs.

Typically, average benefit plans share costs based on a percentage of premiums, resulting in variable costs for the employer, and they do not include taxation, rendering them less valuable. As an employer, Flexwell utilizes the principles outlined in the Canadian tax manual to offer employees non-taxable coverage while providing tax deductions for employers.

An H.S.A. entails an administration charge for each claim, and contributions expire, diminishing the value for employees and wasting employers’ investment. Conversely, contributions to an RRSP offer continuous growth and benefits to the employee, a feature not available with an H.S.A.

What is a flexwell benefit plan?

A Flexwell benefit plan, also known as a flex plan or cafeteria plan, enables employees to select from a variety of benefit options to customize their benefits package according to their individual needs. These options typically include health insurance, dental and vision care, life insurance, disability insurance, and wellness programs.

How does a flexible benefit plan work?

Employees are provided with a set amount of benefit credits or dollars by their employer. They can use these credits to ‘purchase’ various benefits from a menu of options. Any unused credits may be allocated to other benefits, saved for future use, or received as taxable cash, depending on the plan design.

Can employees change their benefit choices during the year?

Typically, employees can only change their benefit selections once every two years. However, changes may be allowed mid-year if an employee experiences a qualifying life event, such as marriage, divorce, birth or adoption of a child, or significant changes in employment status.

How do employees know which benefits to choose?

Employers and their insurance advisors often provide educational resources, decision-support tools, and personalized support to help employees make informed choices based on their individual and family needs.

What are the advantages of a flexible benefit plan for employees?

Customization: Employees can select benefits that best suit their personal and family needs.

Cost Control: Employees can manage their benefit expenditures by choosing only what they need.

Tax Benefits: Contributions to certain benefits can be made on a pre-tax basis, reducing taxable income.

What are the advantages of a flexible benefit plan for employers?

Employee Satisfaction: Offering a variety of benefit options can improve employee morale and retention.

Cost Efficiency: Employers can control their overall benefits budget by setting a fixed contribution amount.

Attractiveness: Flex plans can make the organization more attractive to potential hires who value benefit customization.

Are flexible benefit plans subject to government regulations?

Yes, flexible benefit plans must comply with various federal and provincial regulations, including tax laws and employment standards. For example, in Canada, plans must adhere to the Canada Revenue Agency (CRA) guidelines on tax-advantaged benefits.