Small Business Executive Compensation
Why offer Executive Compensation packages
Top and productive employees can be hard to find, let alone keep. This is why L.S. Financial Services Inc. takes pride in offering tailor-made compensation plans for businesses to retain their most valuable assets.
- How does the business benefit from our compensation plans? It allows the company to keep key employees on the payroll.
- How does employees benefit from our compensation plans? It acts as a motivational benefit knowing their future is getting taken care of.
Here’s a sample of what L.S. Financial Services Inc. can offer in terms of compensation packages:
- Group benefit plans
- Personal financial planning
- Profit sharing
- Retirement compensation arrangements
- Salary continuation plans
The Retirement Compensation Arrangement
With a Retirement Compensation Arrangement, the employer contributes on behalf of the employee. 50% of the contributions go to Canada Revenue Agency as a refundable tax and 50% of the contributions go into an investment account, and 50% of the investment earnings go to the Retirement Compensation Arrangement.
In other words, Retirement Compensation Arrangement is a plan where the corporation pays the Canada Revenue Agency 50% of the amount and 50% to invest into an account that looks like an RRSP. Meaning that when the amount will be withdrawn, the individual will be taxed for the amount received.
Learn more on Wikipedia : Retirement Compensation Arrangement in Canada.
Learn more about Retirement Compensation Arrangement on Canada Revenue Agency website.
The benefits of a Retirement Compensation Arrangement are:
- Promise of a retirement benefit
- Tax deferral until you receive income from the plan
- Protection from company’s creditors