Do small businesses have to provide health insurance to employees?
Jan. 2022 – 15 min read
While employers have to provide their employees with some benefits, health, dental and life insurance are optional
The reasons to offer a benefit plan include employee retention, employee wellness and morale, and some potential employer tax advantages
Do employers have to offer health insurance to employees?
Employers are required to provide their employees with certain benefits, but some, like health, dental and life insurance are optional.
What benefits do they have to offer?
- Employment InsuranceOpens a new website in a new window - Opens in a new window (EI) – paid for by employer and employee
- Canada Pension PlanOpens a new website in a new window - Opens in a new window (CPP) or the Quebec Pension PlanOpens a new website in a new window - Opens in a new window (QPP) – paid for by employer and employee
- Worker's CompensationOpens a new website in a new window - Opens in a new window (WC) or Workplace Safety and Insurance BoardOpens a new website in a new window - Opens in a new window (WSIB) – varies by industry and work environment
The benefits of additional employee benefits
Attract and keep employees – Today, most employees expect, and value, benefits. In fact, according to Sanofi CanadaOpens a new website in a new window - Opens in a new window, 86% of plan members agree their health benefits plan is an important factor when deciding on a job offer.
Healthier employees – Benefits help keep your employees healthier by making health care costs easier to afford, which can lead to fewer sick days.
Morale boost – Knowing you care about their well-being builds loyalty and appreciation.
Tax advantages – The cost of many employee benefits can mean a tax deduction for the employer.
A foundation for success – Offering employee benefits sets the stage for you to succeed and grow by attracting, hiring and keeping good employees. According to Sanofi CanadaOpens a new website in a new window - Opens in a new window, 71% said their health benefits plan is a strong incentive for them to stay with their employer.
When should you consider getting health benefits for employees?
There are benefits plans available for companies as small as 2 employees.
Now that you understand more about what benefits you have to provide your employees, you may want to meet with an advisor to:
Learn more about how adding an employee benefits plan could help keep your business successful
Get a quote for a benefit plan for your employees
The information provided is based on current laws, regulations and other rules applicable to Canadian residents. It is accurate to the best of our knowledge as of the date of publication. Rules and their interpretation may change, affecting the accuracy of the information. The information provided is general in nature, and should not be relied upon as a substitute for advice in any specific situation. For specific situations, advice should be obtained from the appropriate legal, accounting, tax or other professional advisors.