2016 Payroll Updates
Welcome to 2016! Here are some updates specific to payroll and benefits. Benefits are provided to full-time employees (20 hours per week or more) after a three month waiting period.
If your personal tax situation has changed this year, you may want to provide us with new TD-1 Forms (Federal and BC). Examples of changes would new dependents or changes to your student status. TD-1 Forms are available on our HR page under Forms.
There have been a number of increases to our benefits plan rates:
- Updated Medical Services Plan (MSP) rates:
- Single = $75 per month ($48 paid by Spectrum)
- Couple = $136 per month ($109 paid by Spectrum)
- Family = $150 per month ($123 paid by Spectrum)
- Premium Assistance provides reduced rates to people who have family income less than $30,000 per year. Spectrum pays 100% of the reduced rate. (Application for Premium Assistance Form Here.)
- Updated Life Insurance rates: (for $50,000 life insurance on employee)
- $6.60 per month (up by 10 cents per month)
- Updated Dependent Life Insurance rates: (for $5,000 life insurance on the dependents of an employee)
- $1.03 per month (up by 1 cent per month)
- Updated Dental Plan rates: (13% increase)
- Single = $58.37 per month
- Couple = $132.34 per month
- Family = $132.34 per month
- Updated Health Benefits rates: (6.9% increase)
- Single = $91.40 per month
- Couple = $206.04 per month
- Family = $206.04 per month
- Accident and Serious Illness Insurance (ASI): No change!
- Updated Long Term Disability (LTD) rate: (Employees pay this to ensure tax free LTD benefit if the employee is ill or injured)
- Rate increase from 2.303% to 2.483% of monthly earnings
- WorkSafeBC: Increase from 1.39% of wages to 1.66% of wages.
All these increases take effect on January 1, 2016.
The increases in costs to these benefits are based on three factors:
- increasing costs for medications, dental fees and other health care costs
- increased utilization of our benefits by our employees.
- government policy (MSP rates are increased by Provincial Government)
We provide these benefits because we believe they help us with recruitment and retention of employees, and that a good benefits plan will allow us to keep Healthy Employees at Work. As well, when we have discussed priorities with our Policy & Procedures Committee, retaining as much coverage as possible has always been a high priority.
The increases scheduled for 2016 include a 2.5% increase on April 1, 2016 and a 1% increase on February 1, 2017. We are still working with the BC CEO Network and government to confirm funding for these increases.
Our benefits advisor will be providing us with some information on ways to manage our benefits plan costs and we’ll begin an information and consultation process with employees over the next few months. Let us know if you have any questions about your paystub.