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There is a financial obligation to look after employees, even though the role of the employer is ever changing. Employees, including directors and spouses and dependents must also be considered. An employee benefit trust can incorporate all of these people.
At first the employer need only make a small contribution. The company has to make a decision what future funds to contribute. Trustees are usually empowered to enhance existing funds. An approved method of accumulating income is by borrowing from the employer or from third parties like banks.
Employee benefits motivate staff, including corporate executives. Discretionary bonuses, paid out after a fixed period, are a good consideration for employee incentives. The trust can also acquire and hold shares that can be later awarded to employees. Long term savings plan participation is another interesting opportunity.
The employee benefit trust can also be linked to beneficiaries’ permanent health insurance. Medical insurance could be a benefit of the trust and provide regular payments to employees who are ill.
We establish the trust for you and obtain the right administrator for the employer and beneficiaries.