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

I am please to inform that organisation situated at Manitoba has decided to enhance group benefits plan offered to employee in next two months by introducing two more health benefit plans i.e Accidental Death and Dismemberment (AD&D) and Vision Care Coverage. Details of the benefits of both plans are given below -Accidental Death and Dismemberment Coverage - This Plan is beneficial for full time employees in the case of death of employee due to accident and injury, paralysis, loss of limb , speech or hearing etc. VISION CARE COVERAGE - It reduces your expenses in the case of your protection. It pays your expenses in the case of your eyes protection. It pays your medial expense of routine eye check-up , eye surgery etc.

  Contribution

Plan Coverage Premium Employee Employer   

Accidental Death $15,000 $8.00 $4.00 $4.00

Dismemberment Coverage $10,000 $5.00 $2.50 $2.50

Total Monthly Premiums :- $13.00 $6.50 $6.50