What Is a PHSP
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What Is a PHSP
What Is a PHSPA Private Health Services Plan
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
It Makes Health Expenses Tax Deductible To The CompanyAnd Tax Free To The Employee.
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
It Makes Health Expenses Tax Deductible To The CompanyAnd Tax Free To The Employee.
If You Own The Company You Are Either An Employee Of The Company Or You Could Be.
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
It Makes Health Expenses Tax Deductible To The CompanyAnd Tax Free To The Employee.
If You Own The Company You Are Either An Employee Of The Company Or You Could Be.
How Does A PHSP Work?
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
It Makes Health Expenses Tax Deductible To The CompanyAnd Tax Free To The Employee.
If You Own The Company You Are Either An Employee Of The Company Or You Could Be.
You Establish A Plan With Paper Work And A Set-Up Fee - Currently $375.00.
How Does A PHSP Work?
What Is a PHSPA Private Health Services Plan
It Is Not An Insurance Plan.It Is A Tax Advantaged Health Spending Plan.
It Makes Health Expenses Tax Deductible To The CompanyAnd Tax Free To The Employee.
If You Own The Company You Are Either An Employee Of The Company Or You Could Be.
You Establish A Plan With Paper Work And A Set-Up Fee - Currently $375.00.
How Does A PHSP Work?
Then It’s Pay As You Go.
Once the plan is established the claims process starts with a receipt from the healthcare provider for the services paid for. The receipt is attached to a claim form along with a payment to the third party administrator for the amount of the receipt plus a 10% service fee as well as GST (only on the service fee).
Once the plan is established the claims process starts with a receipt from the healthcare provider for the services paid for. The receipt is attached to a claim form along with a payment to the third party administrator for the amount of the receipt plus a 10% service fee as well as GST (only on the service fee).
The third party administrator will provide a receipt to the company for the entire payment making it eligible for the company to deduct the entire payment as a tax deductible (employee benefit) business expense. The administrator also sends a cheque to the employee to reimburse the expense, which is tax free.
Once the plan is established the claims process starts with a receipt from the healthcare provider for the services paid for. The receipt is attached to a claim form along with a payment to the third party administrator for the amount of the receipt plus a 10% service fee as well as GST (only on the service fee).
It must be done by using a third party administrator to be eligible for the beneficial income tax advantage. If the company pays the medical expense directly, it is not a deductible business expense and could be a taxable benefit to the employee.
The third party administrator will provide a receipt to the company for the entire payment making it eligible for the company to deduct the entire payment as a tax deductible (employee benefit) business expense. The administrator also sends a cheque to the employee to reimburse the expense, which is tax free.
The after tax benefit depends on the size of the medical expenses and the income tax bracket of the employee. It is usually significant.
The after tax benefit depends on the size of the medical expenses and the income tax bracket of the employee. It is usually significant.
Remember a person in a 50% tax bracket is basically paying cost plus 100% for any non deductible expense. Whether it’s a hot dog or a root canal, the actually costs is the price plus the same amount going to income tax.
The after tax benefit depends on the size of the medical expenses and the income tax bracket of the employee. It is usually significant.
The maximum income tax bracket in Manitoba is less than 50% but paying for Canada Pension, Workers Compensation, Holiday Pay, etc. can bring the benefit to very nearly 50%.
Remember a person in a 50% tax bracket is basically paying cost plus 100% for any non deductible expense. Whether it’s a hot dog or a root canal, the actually costs is the price plus the same amount going to income tax.
The after tax benefit depends on the size of the medical expenses and the income tax bracket of the employee. It is usually significant.
Once the plan is set up there are no annual costs or premiums other than the cost plus 10% and GST on the 10% service fee to process claims.
The maximum income tax bracket in Manitoba is less than 50% but paying for Canada Pension, Workers Compensation, Holiday Pay, etc. can bring the benefit to very nearly 50%.
Remember a person in a 50% tax bracket is basically paying cost plus 100% for any non deductible expense. Whether it’s a hot dog or a root canal, the actually costs is the price plus the same amount going to income tax.
CRA continues to ignore this kind of request!
CRA continues to ignore this kind of request!
If We Have To Deal With Them, We Should Try To Reduce The Bill When And Where We Can!
“The biggest financial mistake people make is not taking advantage of tax deductions that are available to them”.
“The biggest financial mistake people make is not taking advantage of tax deductions that are available to them”.
Why?
“The biggest financial mistake people make is not taking advantage of tax deductions that are available to them”.
“Because they do not know about them.”
Why?
“The biggest financial mistake people make is not taking advantage of tax deductions that are available to them”.
“Because they do not know about them.”
David Chilton, author The Wealthy Barber
Why?
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