{"id":1432,"date":"2024-08-27T15:56:57","date_gmt":"2024-08-27T22:56:57","guid":{"rendered":"https:\/\/immixgroup.ca\/blog\/?p=1432"},"modified":"2024-09-27T13:39:42","modified_gmt":"2024-09-27T20:39:42","slug":"expanding-into-canada","status":"publish","type":"post","link":"https:\/\/immixgroup.ca\/blog\/2024\/08\/27\/expanding-into-canada\/","title":{"rendered":"Expanding into Canada"},"content":{"rendered":"\t\t
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Expanding into Canada? What Non-Canadian entities need to know when implementing an Employee Benefit program in Canada<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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Key Takeaways<\/strong><\/p>

  1. A typical employee benefits plan in Canada includes life insurance, extended health care, dental care, and often additional offerings like disability insurance, health spending accounts and retirement savings plans.<\/li>
  2. The healthcare component of employee benefit programs is complementary to the coverage provided via provincial coverage, under Canada\u2019s universal healthcare system.<\/li>
  3. Navigating provincial regulations and employment standards is critical, making it important to work with licensed advisors who understand the Canadian market.<\/li>
  4. Offering a robust benefits package is key to attracting and retaining skilled employees in Canada\u2019s competitive job market.<\/li>
  5. Customizing benefits to meet the specific needs of your Canadian workforce and industry will help ensure your company\u2019s long-term success in Canada.<\/li><\/ol>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t
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    This year alone, the Immix Group, based out of Vancouver, British Columbia, has set up employee benefit programs for businesses head-officed in multiple countries around the world. Whether you\u2019re in Australia, Singapore, Ireland, or the United States, there are key pieces of information to know if you are setting up a Canadian entity.<\/p>

    Companies are driven to expand into Canada by many factors including market opportunities, economic conditions, and strategic considerations. In particular, the highly educated, diverse workforce makes Canada an attractive location for companies, often at a lower cost than expansion to comparable locations. \u00a0<\/p>

    To be competitive and successful in this expansion, companies must consider providing the right set of employee benefits for their Canadian employees. And this involves understanding the legal requirements and offering the right benefits. Here\u2019s a list of key things to help you navigate the process:<\/p>

    \u00a0<\/p>

    The Basics: Canada has a Universal Healthcare System <\/strong><\/h3>

    Canada has universal healthcare, which is adjudicated provincially; this means coverage differs slightly depending on the province or territory of residence of your employees. All employees must be residents in order to qualify for provincial healthcare.<\/p>

    The reason this is important is that employer-sponsored extended health and dental programs may require provincial healthcare to be in place, as the two programs are complementary. \u00a0<\/p>

    For most full-time permanent employees in skilled positions, the expectation is that the employer will provide an employee benefits program with a range of coverage. However, providing an employee benefits plan is not mandatory (please note the province of Quebec<\/a> has special requirements) and coverage levels differ significantly from employer to employer. Many employers do not provide any extended benefits at all.<\/p>

    While not mandatory, a comprehensive benefits program is integral in attracting and retaining talent, and in protecting and promoting the well-being of employees.<\/p>

    What coverage does a typical Canada employee benefits plan include? <\/strong><\/h3>

    \u00a0<\/strong><\/p>

    Within Canada, when one refers to their employee benefits plan<\/a>, they are usually referring to the insurance package their employer sponsors, which is typically facilitated through a major insurance provider (Manulife, Sun Life, Canada Life, Blue Cross, RBC Insurance etc). \u00a0<\/p>

    We will indicate the most basic components of an employee benefits program, followed by additional benefit offerings that comprise a more comprehensive offering.<\/p>

    The following are the core components of a group benefits plan:<\/p>

    \u00a0<\/strong><\/p>

    Life Insurance<\/strong><\/h4>

    Life insurance amounts are usually either a small flat amount of coverage such as $25,000 or a salary-based benefit such as 1 x earnings, to a maximum. Higher amounts of coverage are usually extended to those in larger companies, or for more highly skilled professional firms employing those in more \u201cwhite collar\u201d occupations.<\/p>

    Accidental Death & Dismemberment (AD&D) is usually included alongside the Life insurance benefit, for the same amount of coverage.<\/p>

    For small groups, Life Insurance and AD&D are usually a very inexpensive component of the program, often running just a few dollars per employee, per month. The cost varies depending on the demographics of the group, and the overall volume insured.<\/p>

    Extended Health Care<\/strong><\/h4>

    As mentioned previously, Canada has universal health care. Extended Health Care is exactly that \u2013 an extension of the basic components provided through the provincial programs. Provincial healthcare is complex and differs across the country. The most simple way to understand what an employee benefits plan provides is to focus on the core components of a typical extended health care package: \u00a0<\/p>