Frequently Asked Questions
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Click through the questions below to get the answers to some of the most frequently asked questions we receive.
What is the Benefit Wallet?
The Benefit Wallet is a simple, flexible and affordable way for small business owners to provide a benefit plan to themselves and their employees. It is a lot like regular employee, or group benefits, because it can be used to provide employees with the same insurance, health and dental benefits as a traditional benefit plan. However, the Benefit Wallet also allows an employee to use the funds to purchase a wide variety of other things, or contribute to an RRSP, purchase insurance or donate money to their favorite charity.
How is it Different than Traditional Employee Benefits?
With a traditional employee benefits plan, companies need to choose between set plans and then they pay a monthly premium based on their employees’ demographics and medical conditions. They pay the same monthly premium even if employees do not use the benefits and if they do use them, the company may get a noticeable increase in costs at the end of each year. With the Benefit Wallet, companies get to choose the limit each employee can spend each year and they only pay if their employee uses the plan. There are no surprises at renewal time.
What About Big Expenses?
The Benefit Wallet is really great for more routine expenses like medicine, glasses, visits to the dentist, gym memberships and those types of expenses. Employers also have the option of getting Major Medical and Travel insurance for their employees to cover bigger, unexpected medical expenses both at home and out of provide. And it only costs between $20 and $40 per month per employee.
How Do I Get Set Up?
Setting up a plan is super easy. Companies only need to provide basic information like company name, contact information, banking information and their employees’ names and email addresses. BeniPlus then reaches out to each employee to get their contact information, dependents names and banking information and tell them how to download the app to start claiming.
How is it Flexible for Employers?
When setting up, employers get to choose which categories of benefits they want to offer their employees. Some only want to offer basic medical expenses and that’s okay. Others may want to offer the whole package including health expenses, wellness expenses, personal insurance, contributing to an RRSP, or giving to charity. Employees then get to choose which benefits they actually want to take advantage of, so employers aren’t paying for benefits that employees aren’t using.
How is it Flexible for Employees?
Employers get to choose what types of benefits employees can use, such as health, wellness, insurance, RRSPs or charitable giving, but employees get to decide exactly which benefits they want to use. Some employees may opt for all medical expenses and then use their benefits to buy glasses; others may want to put it all into an RRSP; and others may want to use them for a combination. It is up to the employee. That means that employers are only paying for benefits their employees actually use.
What is Instant Sign-Up?
Instant Sign-Up is a great option for a small business owner who works in the company and has some medical expenses coming up, but does not have the time to go through the registration process. You can fill in some basic information and set your start date immediately. If you incur a medical expense within 30 days, you can complete the registration and claim it through your company.
How Much Does it Cost?
Unlike traditional group benefits, companies don’t pay a monthly premium. You only pay when your employees make a claim, and you only pay for the expense plus a 7.5% administration fee and taxes. Employers set an annual limit and employees are only allowed to claim expenses up to that amount over the year. In addition, costs are tax-deductible for the company and most expenses are considered non-taxable income for the employee, so an owner who works in the company can cover their medical expenses through the company with no tax implications on their personal income tax.
How Many Employees Do I Need to Enrol?
You can set up a Benefit Wallet, including a Healthcare Spending Account (HSA), a Wellness Spending Account (WSA), RRSP, Charitable Giving, and Major Medical and Travel with only one employee, but it will generally require 3 or more employees to get other group insurance. Alternatively, small companies with only 1 or 2 employees, can opt to set up a Benefit Wallet and then to take individual insurance plans for each employee. We are happy to work with you to find a suitable solution.
How Long Does A Claim Take?
A claim in a Healthcare Spending Account (HSA) or Wellness Spending Account (WSA) takes 3-4 days for reimbursement. Claims on group insurance will vary depending on which type of insurance is being claimed against and the circumstances of the claim itself.
Do We Need to Take the Group Insurance?
What is Critical Illness Insurance?
What are the Tax Advantages for Small Business Owners?
The Benefit Wallet is a very tax efficient way for business owners who work in the company, to pay for medical expenses through their company. Let’s say an owner has a $1,000 medical expense and a 25% tax rate. If they pay the medical expenses out of pocket, they will need to pay themselves more than $1,300 to cover the expense and the income tax. With a Benefit Wallet, the expense becomes a deductible business expense costing the company just over $1,100, which includes the claims plus a 7.5% administration fee and taxes. It is non-taxable income for the owner, so they can save $200.
Can Employees Buy Individual Insurance?
Are Premiums Tax Deductible?
In according with CRA regulations; All of the expenses and premiums paid out through the BeniPlus plan are tax deductible to incorporated companies as expenses.
Most of the benefits are received by an employee as non-taxable income, but there are certain expenses and insurance coverages that are not. You should contact your accountant to confirm how the plan will affect your taxes.
Difference Between Critical Illness and Major Medical?
The main difference between Critical Illness Insurance and Major Medical Insurance is the nature of the coverage
Critical Illness Insurance pays a lump sum of money if the policy holder is afflicted with a covered disease or illness and survives for a certain amount of time after diagnosis. The money can be used at the policy holders discretion.
Major Medical Insurance on the other hand, covers medical and other expenses related to a major medical condition while in the insured’s home province.
How Much Disability Insurance Can I Get?
Long-Term Disability Insurance coverage is normally based on a percentage of your income. Our plan covers 75% of your income up to a total of $3,500 per month with no underwriting. This can be increased to $6,500 with financial underwriting.
What is a Wellness Spending Account (WSA)?
How Do I Contribute to an RRSP?
The BeniPlus Benefit Wallet helps employees prepare for retirement by investing some of their benefit dollars into a group Registered Retirement Savings Plan (RRSP).
Employees decide how much of their benefit dollars they want to put into their plan and employers decide if they want to match their employees’ contributions or make other contributions as well.
Once a plan is set up, we will take care of making contributions from the employer’s bank account into the employee’s RRSP plan on a monthly basis.
Who Directs the RRSP?
Once contributions are made into the RRSP, the employee is free to direct how those funds are invested within the plan. They will be connected directly with the RRSP manager to make those decisions.