Employee benefits administration is the facilitation of all paperwork required to properly set-up your new employees, make changes to existing employees or to remove former staff. Often this step is either overlooked or poorly managed. At DENT, we blame poor administration on your current provider not educating you (or your designated administrator) on the basic requirements and the cost of getting this important step wrong.
So what happens when employee benefits administration goes wrong? Here are a few possible scenarios where a business owner would be held responsible:
- Employee’s optional dependent life insurance enrollment form was lost, the employee’s spouse was deceased and the business owner ended up having to compensate the employee for the benefits owed.
- Health benefit premiums were not deducted properly from an employee’s pay cheque. Employee had a health complication and the employer was responsible for reimbursing the employee for the entire claim.
- Employer can be liable when employees are not informed of their rights to benefits such as medical expense reimbursements or long term disability benefits.
- Employer fails to complete documentation for a WCB claim, this results in fines levied on the business.
There are a number of situations where a business owner will be liable for failing to properly administrate their employee benefits plan. Improper employee benefits administration puts your business at financial risk for a potentially damaging fine. However, these fines are completely avoidable with proper organization and support from your employee benefits provider.
If you are concerned about employee benefits administration, or are unsure if your business is currently at risk, contact the group benefits experts at DENT Benefits for a consultation.
Group benefits administration does not have to be an arduous task with the technology available today. Check out our Technology page for more information on the options available for your business.
The information in this material is derived from various sources. Material is provided for general information and is subject to change without notice. Every effort has been made to compile this material from reliable sources; however, no warranty can be made as to its accuracy or completeness. Before acting on any of the above, please contact us for benefit, pension and insurance advice based on your corporate or personal circumstances.