At one point or another during an employee’s tenure, you will have to complete third-party forms on behalf of your employee. You’ll also require your employee to complete documents for yourself or a third party.
And sometimes those forms won’t get completed, despite best efforts. But failing to appropriately and correctly complete these forms, or have the employee complete them in a timely fashion, can be a potentially costly risk.
Often completion of documents begins with a new employee’s first day on the job. There are forms to enroll that employee in the workplace health plan, dental plan or other health services plan. And if those forms are not completed correctly, and submitted promptly, you might be setting your business up for trouble. Some court cases have found employers liable for losses incurred by the employee in such situations. Specifically, companies have been found responsible for:
- payment of benefits following the death of an employee’s spouse, when the company misplaced the employee’s optional dependent life insurance enrollment forms; and
- long-term disability compensation for an employee when an employer failed to enroll the employee in the available long-term disability plan successfully.
And the responsibility doesn’t stop once the employee is hired. In some cases, employers have been found liable and required to pay all claims, in situations where they failed to deduct healthcare premiums and render to the insurer properly. The resulting lack of health coverage for the employee was a costly expense for the employer who had to reimburse out-of-pocket expenses for their employee.
CPP & EI Deductions
Additionally, if an employer fails to deduct and submit CPP and EI contributions, they could find themselves on the hook for fines and penalties. And not filing a Record of Employment with Service Canada within five days after an employee’s last day of work can result in additional fines and liabilities.
Another area of vulnerability for many employers is the area of non-cash benefits such as parking or gift cards. These perks are taxable, and carry with them complex filing requirements often affected by changes in legislation. Staying on top of the latest filing requirements is a must for employers who offer these types of benefits.
Administering employee benefits and other documents can be a time-consuming task. But it’s a task worth the time to do correctly and in an expedient manner. Failing to properly complete and submit documentation can cause more than just headaches for your business.
Ask for Help
The employment requirements and regulations in Ontario can be complex and confusing. To ensure that your company hasn’t overlooked potential risks, contact the HR and staffing experts at Employment Professionals Canada. We partner with companies to ensure your HR and staffing needs are met while also remaining compliant with any employment laws. Contact us today to learn how we can help you.