Group Retirement Planning

As a small business owner, your relationship with money is likely to be different from when you were a salaried employee. Because your personal income is so closely tied to your business finances, it is important for you to make the most efficient use of your hard-earned dollar by considering things such as:

A health and welfare trust (HWT) is a formal trust that an employer creates to pay health and welfare benefits for its employees. It must conform to the trust laws of the province where the employer does business. Working with its legal advisors, the employer creates a trust and appoints a trustee. The employees are the beneficiaries of the trust.

The sole purpose for an HWT is to deliver specific employee health and welfare benefits. Those benefits are listed in subparagraph 6(1)(a)(i) of the Income Tax Act (ITA) and in paragraph 1 of “Interpretation Bulletin IT-85R2 – Health and Welfare Trusts for Employees” (IT-85R2):

  • Group sickness or accident plans – GSAIPs 
  • Private health services plans – PHSPs                                                                
  • Group term life insurance policies 

Offer your employees the protection they deserve, and make your company a place where people want to work. Make your business more competitive with group benefits. Here are five great reasons to offer group benefits:

Protect Your Employees
While Canada’s national healthcare program gives Canadians access to doctors and emergency medical treatment, it doesn’t cover everything. In fact, some new drug treatments can have very high costs. A group benefits plan helps to ensure your employees and their dependents are adequately protected.

Protect Your Business
Group disability and health & dental benefits ensure your investment is protected in case an employee becomes sick or injured.

Maintain Productivity
Your employees face many common challenges created by the competing priorities of work and life. An Employee Assistance Program or a Best Doctors Program can provide outside resources, tools and support they need— and helping employees stay focused at work.

Attract and Retain Key Talent
A well-designed group benefits package can help to make your business more competitive, recruit top talent, retain employees and boost employee satisfaction and maintain productivity.

Provide Tax-Efficient Compensation
Without a benefits plan, employees must pay for day-to-day health, dental and prescription drug expenses with after-tax income. Employee benefit plans can be designed to cover these expenses using before-tax income—leaving more money in your employees’ pockets.

  • Minimizing  taxes
  • Diversification
  • Transparency of fees
  • Succession planning
  • Having sufficient risk protection.
  • Charitable giving as part of your plan

Established under section 144(1) of the Income Tax Act, the EPSP is a special purpose trust that allows the beneficiaries of the plan to share in the profits of a company. The allocations to an EPSP are taxable in the hands of an employee and a deductible expense for an employer.

Group Life & Health Benefits

Group Registered Retirement Savings Plan (RRSP)

Employee Profit Sharing Plans

Health & Welfare Trusts (HWT)

Financial Planning Services

Creating a retirement savings plan can be considerably more complex for small business owners than for other people, because there is more to think about. Small business owners need to consider multiple sources of retirement income, special tax considerations, and succession issues when building a retirement plan.

Undoubtedly, the best way to tackle retirement is to take a holistic approach. This means considering both your personal finances and your business finances – and how the two can work together to help you reach your retirement goals.

Group Investment Planning

Copyright Deverall, Calma & Associates 2A - 209 Frederick St. Kitchener, ON N2H 2M7 
Phone: 519-741-1259  Fax: 519-741-1592 E-mail:

A Group RRSP is a collection of individual RRSPs offered to employees by their sponsoring employer. Contributions are taken from the employee's pre-tax pay through payroll deductions, reducing their tax burden immediately. Contributions are then deposited into their RRSP as specified.

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