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Efficient Business Owners Money-Saving Strategy: The Secret Hack You Need to Maximize Benefits while Cutting Costs

If you operate as an Incorporated Company, Partnership or Sole Proprietorship, CRA provides you the opportunity to implement and participate in a Private Health Services Plan (PHSP) to reduce the sting of your medical and dental expenses.

What is a PHSP?

A PHSP is a Canada Revenue Agency (CRA) approved plan that allows health, medical and dental expenses of employees to become a deductible business expense for the employer. This plan provides affordable coverage for both the self-employed and small-medium business owners. Larger corporations also benefit from this low-cost plan, and their employees are provided with an exhaustive list of eligible expenses.

CRA requires that a Third-Party Trustee and Administrator administer a PHSP to ensure accuracy and compliance with eligible expenditures. Costs for administering a plan typically range from 10-12% of the amount of expenses incurred.  These administrative fees, however, are deductible from business income.

The good thing about a PHSP is that it can be used in conjunction with a group insurance plan, to either cover the non-reimbursable portion of an expense or to cover those expenses specifically excluded from a group plan. Receiving a straight tax deduction is much better than a tax credit.

There is no waiting period for a PHSP. Also, in most cases, you’re able to go back as far as 365 days and claim reimbursement for health and/or dental expenses that you’ve already incurred – something that is not available through a group insurance plan.

If you are a business owner, consider the following highlights of this plan:

  • Industry-leading flexibility & scope of coverage
  • Savings well over 30%
  • Charges for approved claims only, reducing risk and liability
  • No medical questionnaire
  • No monthly premium – pay as you go option
  • Low cost
  • Non-taxable benefit
  • Deductible business expense
  • Cost control features & options
  • Convenient on-line system for claims processing

Have more questions pertaining to your specific business arrangement? We are here to help you create a long-term plan that helps ensure your best success.

Ready to take control of your financial future? 

From your first consultation, expect personalized financial services and continuous support to help you achieve your goals with us.  

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