A Healthy Life Is A Choice You Make… Telus Healthcare Makes It Easier!
Are you a Business Owner? Learn how to fully tax-deduct annual fees and private medical services by enrolling in a Private Health Services Plan
The Private Health Services Plan
A PHSP is a Canada Revenue Agency (CRA) approved plan that allows medical expenses of active business owners and employees to become a tax-deductible business expense. This nationwide plan provides affordable medical coverage for business owners of any size with an exhaustive list of eligible expenses. Incorporated businesses have no applicable limits, while unincorporated businesses must adhere to the maximum limits set out in the Income Tax Act, Section 118.2(1).
Low Cost Non-Taxable Benefit
The PHSP is a low cost plan with no deductible, no monthly premiums, and no renewal charges. It allows the company to provide employees with a non-taxable medical benefit while allowing the company a fully tax deductible expense.
Deductible Business Expense
A PHSP is an effective way for a business to convert all health, medical and dental expenses into a fully tax-deductible business expense. This can result in very significant savings for both the small business owner and the large corporation.
What’s the cost?
One-time set-up fee plus applicable provincial tax. The additional cost is 10% administration fee on claims submitted.
Combine With Other Health Plans
A PHSP can stand on it’sown or can be used as an add-on to an existing plan. Employers determine coverage limits for each class of employee, and can individualize the plan as needs change. Expenses not covered by traditional insurance plans, can become eligible expenses using the PHSP.
Extensive Coverage
The PHSP is your medical coverage; therefore it is your choice. Allowable expenses are listed in the Income Tax Act, Section 118.2(2), coverage includes braces, Chinese medicine, crowns, insulin treatments, massage therapy, orthopedic shoes and much more.
|
Personal Tax Return |
Paid Personally |
Private Health Services Plan |
Paid By Business |
| Dental & Healthcare Expense |
$1600 |
Dental & Healthcare Expense |
$1600 |
| (3% of net income) Deduct |
$1500 |
Admin Fee (10%) |
$160 |
| Expense available for credit |
$100 |
Tax-deductible total |
$1760 |
| Non-refundable Tax Credit |
$25 |
Tax Deduction |
$1760 |
EXAMPLE: Net income of $50,000 per year with family medical expenses of $1600. Based on a combined Federal and Provincial Income Tax rate of 25%.
Our Partners
Trusted Advisor™ has partnered with Telus Healthcare to enroll business owners of any size in the Private Health Services Plan to 100% tax deduct annual fees and services. Learn more HERE.
