Why would I want a Private Health Services Plan?
As a Business Owner, you would set up a Private Health Services Plan primarily to cover health expenses for your most valuable employee - you (and your family). You or your spouse must be a bona fide employee of your business to enjoy the benefits of a PHSP. Incorporated business owners enjoy the greatest tax advantage from having a PHSP but unincorporated proprietorships can also benefit from having one.
As an Employer, you will want to extend your PHSP to reward and retain valued employees in the form of a Health Spending Account. In fact, your plan must be offered to all employees. The total annual cost, including our admin fee and GST, is a 100% deductible business expense. And YOU control that annual cost by setting the annual benefit amount per employee in advance.