My Family is worth more than your Family

The cost of Family Benefits is somewhat confusing to many businesses as it relates to the cost of a Single Person’s benefits.

For simplicity, the cost of a single person’s plan is about 3 times less that a family plan. So, if you assume the business pays 100% of the plan, this means the budget requires 3 times more money for an employee hired who has a family than one that doesn’t (and remember, no employee discrimination allowed!).

So, hold on, wait a minute…

  • When you buy a computer for an employee, do you need to buy them two monitors if they have a husband and children, while you would only purchase one monitor for a single employee?

  • When there’s an RRSP match, you certainly don’t get a top up for having a family.

  • The CRA doesn’t require a higher tax withholding at source if you have kids.

I guess that means we need to get a ‘Single’ or ‘Family’ box on a resume to financially plan for our fiscal years’ benefit budget expenses.

For more perspective or just to grab a coffee, contact adam@singersteinberg.com

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