Private Health Services Plan (PHSP)
Tax efficient health and dental for business owners!
We pride ourselves on seeking unique products for unique individuals and the Private Health Services Plan is a perfect fit as it provides complete flexibility for business owners. The plan is tailorable - it can be as simple or as comprehensive as suits your business' needs. PHSP plans are not structured like a traditional health insurance plan rather it is a tax efficient way to deduct your business expenses.
The Private Health Services Plan (PHSP) is one of the best kept secrets for business owners. The Canada Health Act and the Provincial government no longer provide coverage for many basic health and dental services and products:
- Dental Services, Prescription Drugs
- Routine Eye Exams
- Eye Glasses, Hearing Aids and other equipment
- Medical Examinations, Blood Tests
- Chiropractic, Massage Therapy, Acupuncture, Physiotherapists
- Psychologists, Naturopathy
With a PHSP, these items and many more are 100% TAX DEDUCTIBLE, dollar for dollar, from your business income. A PHSP is a tax plan (CRA Approved) that allows a business owner to deduct all eligible health and dental expenses from the business for the owner, his or her family and also his or her employees and their families.
We have a preferred partner relationship with the third party trustee for this plan, Pacific First. Canada Revenue Agency closely monitors self-administered plans and therefore a third party administrator is important - Pacific First adjudicates all claims thoroughly the ensure the compliance of our clients. Here is how it works:
The Basics:
- You decide how much money you wish to contribute to your plan on a monthly, quarterly or semi-annually basis.
- All money contributed (within limits) is tax-deductible
- You send in all your medical/dental receipts and the third party trustee reimburses you from your plan.
- Any unused contributions remain will be carried forward in your plan to be used in subsequent years. (You will not lose this money)
The Details:
- There is a one-time-only set up fee of $200
- You may choose to “top up” your deposits to the plan at any time if you anticipate higher medical expenses
- There is an 10% adjudication fee on claims
- There is a monthly administration fee of $2.50 per member
- For corporate businesses a PHSP may be backdated two fiscal years provided that the income tax for the corporation has not been filed.
