Before increasing salaries for your employees consider this tax savings strategy... 😳
Employees... Share this with your employer! 💡
By increasing salaries you are increasing the tax, CPP, EI payable by the employee and to you as the Employer. 😖
What if your employees were using some of their income towards health care anyway? They would be using after-tax dollars to pay for massage, chiro, dental, prescriptions etc. 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.
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. It would cost the employee nearly $400 for a $1,000 raise! As for the employer, it would cost you an additional $74.60 in additional payroll remittances.
Very interesting way to add a lot more value to employees and not burden them with additional taxation. 👌🏻