Payroll Fundamentals 1

Assignment

SCENARIO

Your organization, located in Manitoba, will be enhancing the group benefits plan offered to employees in two months by adding accidental death and dismemberment (AD&D) coverage and vision care coverage. The organization will pay 50% of the cost of the AD&D premiums and 50% of the cost of the vision care premiums, with the employees paying the other 50% of each premium. The Director of Finance, Tina Colin, has requested that you, as the Payroll Manager, prepare a communication for the employees, explaining how these new benefits will impact their net pay.

Your response must be stated in your own words and should be based on the course material, your experiences, knowledge gained through the course and at least one external government resource.

200 - 350 words

Remember you are writing to theemployees- try to avoidjargon

There are both employer and employee portions of this coverage - each will have a differentimpact

Pay attention to the province - it has a different impact for each benefit!

What is Accidental Death and Dismemberment coverage?

oWhat type of allowance or benefit would this be (cash or non-cash?Taxable or non-taxable?)

oWhat amount would be included in the employee's income?

oWhat impact would this have (if any) on any statutory deductions for employees?

oWhat would be the impact on their net pay?

What is vision care coverage?

oWhat type of allowance or benefit would this be (cash or non-cash?Taxable or non-taxable?)

oWhat amount would be included in the employee's income?

oWhat impact would this have (if any) on any statutory deductions for employees?

oWhat would be the impact on their net pay?