How many employees do I need to get group benefits in Ontario?

Most group benefits carriers in Ontario will issue a plan for groups of 2–3 enrolled employees, provided all eligible employees are enrolled. Some carriers offer simplified issue plans for very small groups (2–5 employees) that require no medical underwriting. As a small business owner, you can also include yourself and any family members employed in the business. BrokerUnion works with carriers that specialize in small group plans, making coverage accessible for businesses with as few as 2 employees.

Are group benefits tax deductible for an Ontario business?

Premiums paid by an employer for group health and dental benefits are generally tax-deductible as a business expense in Canada. Employer-paid group life and disability premiums may also be deductible, with specific rules for each benefit type. Employees do not pay income tax on most employer-paid health and dental benefits, making group benefits a tax-efficient form of compensation. BrokerUnion always recommends confirming the specific tax treatment with your accountant.

Are Ontario employers required to continue group benefits during parental leave?

Under Ontario's Employment Standards Act, 2000 (ESA), if a group benefits plan was in place before an employee began a pregnancy or parental leave, the employer must continue to pay their share of the premiums during the leave — provided the employee continues to pay their share. Discontinuing employer-paid benefits during an ESA-protected leave is a violation of the ESA and can result in a Ministry of Labour complaint.

Can a sole proprietor or self-employed person get group benefits in Ontario?

Yes. Self-employed Ontarians have several options: a sole proprietor group benefits plan (where you are the only member, available from select carriers), a Health Spending Account (HSA) that allows you to claim health expenses as a business expense, or individual health and dental insurance. BrokerUnion's advisors compare all available options for self-employed clients across Ontario.

Group Benefits

Group Benefits in Ontario

Q: How much do group benefits cost per employee in Ontario?

Basic health and dental coverage for an Ontario employee (no dependants) runs approximately $80–$180/month per person. Family coverage runs $250–$450/month per family. Adding disability insurance typically adds $30–$80/month per employee. A group of 5 employees with single coverage and basic health and dental can expect $400–$900/month total. BrokerUnion compares quotes across multiple carriers annually to ensure you always receive competitive rates.

BrokerUnion is an independent, FSRA-regulated brokerage based in Pickering. Instead of representing one insurer, we compare group benefits across leading Canadian carriers, Sun Life, Manulife, Canada Life, Blue Cross, Empire Life, Beneva, Desjardins and RBC, to find the plan that fits your team and budget.

We help small businesses with two or more employees, growing companies hiring their first few staff, sole proprietors extending coverage to themselves, and employers due for a renewal review.

Request a Group Benefits Quote Speak to a Broker Compare Group Benefits Options Book an Appointment

Coverage

What Group Benefits in Ontario Cover

A group benefits plan is a package of insurance coverage an employer arranges for eligible employees, usually at a lower cost per person than individual coverage because the risk is spread across the group. In Ontario, a typical plan can include.

Extended health care

items not covered by OHIP, such as paramedical services, medical equipment and out-of-country emergency care.

Prescription drug coverage

Formulary or open drug plans with cost management options.

Dental care

from routine cleanings to major and orthodontic work, depending on the plan.

Vision care

Eye exams, lenses, frames and contact lens allowances.

Life insurance and AD&D

Group life coverage for employees, with optional dependant coverage.

Short-term and long-term disability

Additional protection for accidental injury or death.

Employee Assistance Programs

Income replacement when employees cannot work due to illness or injury.

Critical illness coverage

Lump sum coverage for a defined list of serious diagnoses.

Health Spending Accounts

Confidential support for personal, family and workplace concerns.

Wellness and virtual care benefits

Flexible, tax effective dollars employees can apply to eligible health and dental expenses.

Wellness and mental health supports

Virtual care, therapy access and broader wellness resources.

Who this is for

Ontario small businesses with 2 or more employees
Growing teams that want to attract and retain talent
Owners adding benefits for the first time
Employers reviewing or replacing an existing plan

How BrokerUnion helps

Review your team, budget and goals in plain language
Compare plan designs from leading Canadian group benefits carriers
Recommend coverage that balances value for employees with cost control for the business
Coordinate enrolment, employee communication and ongoing administration
Provide a single point of contact for renewals, claims questions and plan changes

Group Benefits Plans for Small Businesses

Small businesses often assume group benefits are only practical once a company reaches a certain size. In practice, plans exist for businesses with as few as two eligible employees, and several carriers offer simplified underwriting for smaller groups so a plan can be set up without lengthy medical questionnaires.

If you're a sole proprietor, you may also be able to access group-style coverage or a Health Spending Account depending on your business structure. This is worth discussing directly with an advisor, since eligibility rules vary by carrier.

For growing companies, we can design a plan that scales, starting with core coverage and adding options like critical illness or an HSA top-up as the business and budget allow.

Health Spending Accounts vs. Traditional Group Insurance

A Health Spending Account works differently from a traditional group plan. Instead of a fixed set of covered items with defined limits, the employer sets an annual spending allowance per employee, and employees submit eligible medical and dental expenses for reimbursement up to that amount.

HSAs can work well as a standalone benefit for very small teams, or alongside a traditional plan to cover expenses that fall outside standard limits. Which approach makes more sense depends on team size, budget predictability and the type of expenses your employees are likely to claim, and it's something we walk through as part of a quote.

How We Help: Plan Design, Comparison and Renewal Support

Plan design: We start by understanding your team size, budget and the coverage that matters most, then structure a plan around whether you're starting from a carrier's default package.
Carrier comparison: We request and compare quotes across our carrier network so you can see how pricing and coverage differ before committing to one insurer.
Enrolment and employee communication: Once a plan is chosen, we help get employees enrolled and explain what's covered, so HR isn't fielding every benefits question alone.
Administration: We're available to help with day-to-day plan questions and changes as your team grows or changes.
Renewal support and coverage reviews: At renewal, we review what the carrier is proposing, check it against the market, and advise on whether adjusting coverage or switching carriers makes sense.

Why Group Benefits Premiums Change at Renewal

Renewal increases are common and usually come down to a mix of factors: the claims your group made over the past year, rising drug and dental costs across the industry, the age profile of your team, and general trends in the carrier's overall book of business.

An increase doesn't automatically mean you're overpaying, but it's worth having a broker check the renewal against current market pricing rather than accepting it without comparison. That review is one of the more common reasons employers reach out to us.

Why Work With a Broker

Going directly to one insurer means seeing that insurer's plans and pricing only. As an independent brokerage, BrokerUnion works across multiple carriers, so the comparison is between insurers rather than within one insurer's own product tiers.

Our advisors are LLQP-licensed and regulated by FSRA, and because we're not tied to a single carrier, our role is to help you find the plan that fits, not to steer you toward one insurer's product line.

Areas We Serve

BrokerUnion works with businesses across Ontario, with offices in Pickering, Barrie, Mississauga, Whitby, Sudbury and Kitchener. Wherever your team is based in the province, a licensed advisor can put together a group benefits comparison for you.

FAQ

Common questions about group benefits

What are group benefits in Ontario?

Group benefits are a package of insurance coverage, typically extended health, dental, life insurance and related benefits, that an employer arranges for eligible employees through an insurance carrier, usually at group rates.

What does a group benefits plan cover?

Coverage varies by plan, but commonly includes extended health care, prescription drugs, dental, vision, life insurance and AD&D, short- and long-term disability, and optional extras like critical illness coverage, an Employee Assistance Program or a Health Spending Account

How many employees are needed for group benefits in Ontario?

Many carriers offer plans for businesses with as few as two eligible employees. Minimum group size and underwriting requirements vary by carrier, so it's worth confirming eligibility for your specific team.

How much do group benefits cost per employee in Ontario?

Cost depends on the coverage selected, the number and age profile of employees, the carrier chosen, and the plan's claims history over time. There isn't a single standard rate; a quote comparison is the most reliable way to see actual pricing for your team.

Are group benefits mandatory for Ontario employers?

No. Offering a group benefits plan is a business decision, not a legal requirement, though many employers offer one to stay competitive when hiring and retaining staff.

Are employer-paid group benefits tax-deductible in Ontario?

Employer contributions to a group benefits plan are generally a deductible business expense, though the tax treatment of specific premiums and benefit payouts can vary. Speak with an accountant or tax advisor for guidance specific to your business.

Are group benefits taxable to employees in Ontario?

Taxability depends on the type of benefit. Some premiums or payouts are taxable to the employee and others aren't, so it's worth reviewing the tax treatment of each coverage type with an advisor or accountant when the plan is set up.

Can a small business with two employees get group benefits?

Yes, in many cases. Several carriers accept groups starting at two eligible employees, often with simplified underwriting for very small teams.

Can a sole proprietor obtain group benefits in Ontario?

Depending on business structure, sole proprietors may be able to access group-style coverage or a Health Spending Account. Eligibility varies by carrier, so this is best confirmed directly with an advisor.

Can part-time employees receive group benefits?

Some plans allow part-time employees to be included, often subject to minimum hours-worked requirements set by the carrier. This can usually be built into the plan design.

Plan availability, eligibility and terms vary by carrier. Group benefits are placed by LLQP-licensed life advisors associated with BrokerUnion Insurance and are regulated in Ontario by the Financial Services Regulatory Authority of Ontario (FSRA). This page is educational and is not a substitute for the wording of your group benefits contract.

Guides

Learn more before you decide

Ready to design your plan?

Tell us a little about your team and we will follow up with quotes and plan designs from the carriers that fit best, usually within one business day.

Get a Quote Speak to a Broker Book an Appointment