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The Benefit Specialists Corp. is more than willing to answer any questions you or anyone you know may have had. If you know
someone who has questions regarding the insurance industry or anyone
who wants to join our mailing list please contact me, or forward this
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Contact the Benefit Specialists Corporation to find out how being a CFIB member can help you with your Employee Benefits program.
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Just a reminder....
As
independent brokers we have the ability to go to any insurance company
to get insurance quotes. If you are looking at your group benefit plan
(or know of another company who is) and are wondering if you are using
your dollars in the most efficient way possible please contact us and
we will be happy to discuss this with you.
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TBSC TIDBIT Mandatory Participation: What it Means and Why it is Important to Know About
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By Jennifer Creighton, BA The Benefit Specialists Corp.
When a group plan is designed, among the benefit choices and
amounts, it is decided whether the group benefits are mandatory for all staff
members or not. However, the choice is
determined by the insurance carrier and many stipulate that small-size
companies have mandatory participation clauses in the group contract. This should be discussed at the time of
implementation. Whatever the outcome, it
is one of the most important things a Human Resources representative or Plan
Administrator should know. Mandatory participation in a benefit plan means that at
group plan inception all current employees are enrolled. From this point on, all future employees must
be enrolled. Employees can only opt out
of health and dental benefits, and this can only be done when proof of other
coverage is provided. The Life,
Accidental Death and Dismemberment, and Disability benefits are mandatory. Because all new employees must be enrolled,
the Plan Administrator or Human Resources representative is responsible for their
enrolment within the waiting period set up in the contract. Forgetting to do so will cause the employee
to be considered a late applicant, forcing them and their family to submit
medical evidence, possibly running the risk of being declined altogether. Furthermore, if an employee is completely
missed, there is the danger of a serious medical condition or event befalling only
to find out they are not covered for all benefits. Though it can be considered tedious, having clear and
up-to-date documentation comprised of employee enrolments, family changes,
salary changes and terminations will save money, time and will protect you and
your company. Having an enrolment
completed by the employee, even before the end of their probation or waiting
period can safeguard against tardy submission. Sending an email to your carrier, informing them of an employee
termination is another great way of keeping everything straight between the
employees and the carrier. If you work for a large company, and have a non-mandatory or
85% participation clause, we still believe it is the best policy to enrol
employees for coverage. Illness and
injury are unexpected facts of life and it is always better for your employees to
be safe than sorry. Having said that, if
an employee is absolutely adamant that they do not want coverage we suggest
that you have the employee sign and date a document that indicates that they
have been offered benefits and have chosen to decline. The Plan Administrator or Human Resources
representative would also sign and date as witness. If you need a template of this document,
please contact TBSC. This situation
would only apply if the contract is set up with a non-mandatory or 85%
participation clause. Please contact The Benefit Specialists if you are unsure of
your current contract. Knowing what type
of participation your group contract states, whether new or in-force for a long
time, will help to avoid potential conflicts with employees concerning their
group benefits. |
What Does Dollar Parity Mean for Canadian Snowbirds?
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| By Chris Stephan CEO, Shared Homes International
When the
Canadian Dollar hit parity in 2007 it lasted only a few months before it
retracted back in July of 2008. During that time, Canadians flocked to the U.S.
to purchase automobiles, electronics, and other consumer goods. This time
around, in the midst of a housing collapse unlike anything ever seen on this continent,
Canadians will be going south looking for bigger ticket items, including
vacation and investment real estate.
What Canadians Need to Know...
For Canadians,
buying real estate in the U.S. can seem like a straightforward process. If you
are a cash buyer, you can simply find and purchase the house or condo you
desire. In most cases, transactions will close with the assistance of your real
estate agent and a title company; however, unlike Canada, in the U.S. you normally
won't receive any legal advice pertaining to your real estate purchase. Without
proper planning, you can soon find yourself in trouble with both the IRS and
the CRA. Below are a few of things that
you need to consider when purchasing a U.S. property:
1. FIRPTA
(Foreign Investment in Real Property Tax Act)
FIRPTA was
enacted in 1980 and authorizes the United States to tax foreign persons on the
disposition of real property. Specifically, persons that purchase real property
interests from foreign persons are required to withhold 10 percent of the
amount realized, subject to certain exceptions.
2. Estate
Taxes
Canadians that
die owning U.S. real property may be subject to U.S. estate tax and, depending
on the State in which the property is owned, State estate tax. Estate tax
calculations look at a person's U.S. held assets in relation to their worldwide
assets upon death. In 2009, the maximum federal rate for estate tax was 45
percent with an exclusion amount of $3.5 million.
3. Joint
Tenancy v. Tenants in Common
In Canada, most
people purchasing property with a spouse will use a joint tenancy structure
with rights in survivorship. However, in the United States, using this type of
ownership structure can create double estate taxation. It is generally
recommended that Canadians should hold U.S property as tenants in common in
conjunction with proper will planning.
4. Other
Withholdings and Reporting Obligations
Owning U.S.
property strictly for personal use is less complicated than owning it for
investment purposes. If purchased property is leased, tenants are required to
withhold 30 percent of the rental amount from a Canadian property owner, unless
a withholding certificate is obtained from the IRS. In addition, Canadians
holding U.S. property are required to report any gains from rental, or upon
disposition of the property, with both the IRS and the CRA.
Shared Homes International:
Shared Homes
International provides services and support for Canadians looking to purchase
vacation and investment property in the United States and abroad. Our services
include; foreign property acquisition consulting, legal due diligence for
international real estate purchasers, and currency exchange services. For a
free initial consultation or to schedule a media interview, please contact
Christopher Stephan at the email address and phone number provided below.
cstephan@shintl.com 1-888-847-0344
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BeneCo Reminder
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| The onset of spring reminds us of new beginnings, and spring cleaning. Ensure that all pertinent employee paperwork has been completed and sent in to TBSC. Clear communication with BeneCo ensures that claims are not being paid or declined in error.
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Sean Murray The Benefit Specialists Corp. sean.murray@beneco.ca (403) 547-5236
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The information contained in
this bulletin is for general information purposes only. The articles published
in this bulletin have been collected by The Benefit Specialists Corp. (TBSC) and
we make no representations or warranties of any kind, express or implied, about
the completeness, accuracy, reliability or availability with respect to the
information, products, services, or related graphics contained. Any reliance you place on such information is
therefore strictly at your own risk. In no event will we be liable
for any loss or damage including without limitation, indirect or consequential
loss or damage, or any loss or damage whatsoever arising from loss of data or
profits out of, or in connection with, the use of the information contained in
this bulletin. Through this bulletin you are
able to link to other websites which are not under the control of TBSC. We have no control over the nature, content
and availability of those sites. The inclusion of any links does not
necessarily imply a recommendation or endorse the views expressed within them. |
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