Employers...Take note.
Before increasing salaries for your employees consider this tax savings strategy... ๐ณ
Employees... Share this with your employer! ๐ก
By increasing salaries you are increasing the tax, CPP, EI payable by the employee and to you as the Employer. ๐
What if your employees were using some of their income towards health care anyway? ย They would be using after-tax dollars to pay for massage, chiro, dental, prescriptions etc. ย Simply by setting up a Health Spending Account (HSA) you could give them more money in their pocket and save you, the employer on additional payroll remittances!
Before offering a raise, consider giving a Health Spending Account to your employees. ย
In this video, we outline a Case Study that illustrates the net payable to an employee in a 33% tax bracket versus a Health Spending Account. ย It would cost the employee nearly $400 for a $1,000 raise! ย As for the employer, it would cost you an additional $74.60 in additional payroll remittances. ย ย ย ย ย ย ย ย ย
Very interesting way to add a lot more value to employees and not burden them with additional taxation. ๐๐ป
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