Posted onMarch 2, 2015 by Holly
Providing further benefit options to your employees can go a long way in showing them you value their efforts, and it can also attract skilled employees. A Group RRSP is a low-cost, highly effective way of supporting your employees’ efforts to increase retirement savings and wealth. As the employer, you pay no fees in establishing a Group RRSP. The plan design can accommodate any number of participants and allow for various contribution levels and different investment profiles. Setting up a Group RRSP is very easy and simple to administer through payroll deductions. The employee’s contribution is withheld at source as a payroll deduction. You may top up this contribution with an employer contribution based on any incentive criteria (this contribution is completely optional, but is also a deductible expense for the company). Because the contributions are made regularly, the employee receives the related income tax deduction at the time of each contribution, instead of when filing a return at tax time. This results in a tax savings on each pay-cheque, which reduces the employee’s at-source deductions. I will provide any ongoing support needed to ensure that your plan is operating efficiently. When employees join your Group RRSP, I am happy to offer free investment planning advice to help them achieve their retirement savings goals.