Welcome to a great health benefits idea.
Many business owners in Canada don't know that Private Health Services Plans are available to cover the health expenses of their families and their employees.
Private Health Services Plans (PHSPs) are available to any Canadian business, incorporated or not. With a PHSP, business owners, their employees and families - get comprehensive health coverage while enjoying substantial tax savings. A Private Health Services Plan is an effective alternative to a traditional premium-based insurance plan, or can be used to top-up an existing traditional premium-based plan.
Features of a Private Health Services Plan
- Incorporated businesses, including contractors, consultants, tradesmen, and professional corporations all qualify for health benefits under a PHSP.
- PHSPs can also be used by unincorporated sole proprietors or partnerships for self-employed health benefits.
- There are no premiums with PHSPs; your business only pays a 5% administration fee when a claim is submitted.
- The business ultimately pays the cost of the PHSP claims and therefore gets a 100% tax deduction.
- Canada Revenue Agency (CRA) allows reimbursements to employees to be a tax-free benefit (except in Quebec).
- The administration fee is a fixed percentage of each claim so you know exactly how much you are paying.
- You determine the annual reimbursement level for your employees so your business can budget effectively.
- The Eligible Services are more extensive than with insured plans. They include almost every conceivable health service provided by a registered health professional. See What Is Covered? for details.