Question

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 Manager of Finance, Laura Bruce, has requested that you, as the Payroll Supervisor, prepare a communication for the employees, explaining how these new benefits will impact their net pay.

Answer 1

EXPLANATION--

To:All employees.

From:......

CC:Laura Bruce

Date:21st Jan,2019

Subject:Change in Group Benefits.

This is to boring to your attention that organization is planning to enhance the group benefits plan in coming two month's time.The new changes in the group benefits plan will include adding accidental death and dismemberment(AD&D)coverage and vision care coverage. As per this plan and changes, the company will be catering for 50% of the total cost of the AD&D, and similarly in the vision care coverage premium for which also company will be catering for 50% of the total cost. Therefore, the remaining 50% of premium under each plan will have to be paid by employees. So this will reduce the net pay of each employee by 13.7% as to cater to above mentioned two premiums.

The company is taking maximum efforts and commitment towards employee satisfaction and need cooperation in this course of action from all the employees. Kindly support us in this new changes.

Thank you.

..............

Payroll Supervisor