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, Cheryl Hunt, 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

To, Employees

From, Mr A, Payroll Supervisor CC: Cheryl Hunt Date: 16th Feb 2020 Subject - New Benefits and its impact We are happy to inform you the way that organisation intends to improve the group benefit plan in the upcoming months. The new changes in the Group benefits plan will incorporate AD&D coverage and vision care coverage. According to this arrangement and changes, 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. This will decrease every employee's net compensation by 13.7% as to provide for aforementioned premiums. We hopefully expect each employee understands that these changes are for good of the employees and the company. We further expect continued cooperation of each and every employee in this behalf. Thank you. Payroll Supervisor