Payroll. Canada. Your organization, located in Manitoba, will beenhancing the group benefits plan offered to employees in twomonths by adding accidental death and dismemberment (AD&D)coverage and vision care coverage. The organization will pay 50% ofthe cost of the AD&D premiums and 50% of the cost of the visioncare premiums, with the employees paying the other 50% of eachpremium. The Manager of Finance, Laura Bruce, has requested thatyou, as the Payroll Supervisor, prepare a communication for theemployees, explaining how these new benefits will impact their netpay.

Information to include: Introduction;information to include when discussing the two new benefits: 1.Whether it is a taxable benefit, non-taxable, or a deduction, eachportion must include the PST of 8% for any insurance premium inManitoba. 2. If the benefit is taxable, that is should be includedin an employee's income as it is earned or enjoyed, meaning on apay period basis. Accidental Death and DismembermentCoverage: Employer 50%, Explain what this shouldbe classified for the employee( i.e non-cash taxable benefit);explain the consequence for their pay: included in the employees'GPTI, increase in CPP and Taxes, Decrease in Net Pay. Employee 50%,explain how the employee would see their portion of the payment: adeduction on their pay statement; their 50% (including 8% PST) willreduce their pay by that amount. Vision Care Coverage(Private Health Insurance): Employer 50%;explain that the employers' portion ( including the 8% PST) is nottaxable; will not impact their pay. Employee 50%, explainhow the employee would see their portion of the payment: deductionon their pay statement; their 50% (including 8% PST) will reducetheir pay by that amount. Summary