| PROGRAM INFORMATION
Olympia's Private Health Services Plan
Save $$$ With This Smart Business Tool!
Business owners are always searching for new corporate strategies to reduce their tax burden. One such strategy that should not be overlooked is to set up a Private Health Services Plan.
A Private Health Services Plan (PHSP) is not a plan of insurance. It is both a health plan and a tax plan that follows the strict guidelines of CCRA legislation (as set out in Section 248(1) of the Income Tax Act). It is a vehicle that enables you, as a business owner, to deduct health care costs easily and efficiently.
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Even if you have an insurance plan in place, a PHSP will serve you well.
Recover 100% of all eligible health and dental expenses, including major procedures not typically covered with an insured plan. Deductibles, co-payments and even insurance premiums can be recovered through a PHSP. In addition, previous medical conditions and age do not play a factor in eligibility for the PHSP benefit.
If you are a business owner (one to 100+ employees), you should be setting up a PHSP…a smart strategy to reduce your tax burden and provide tax-free health benefits.
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| OUR PRIVATE HEALTH SERVICES PLAN:
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provides tax deductible business expenses |
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provides tax free health benefits to you and employees |
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allows you to set the benefit limits enabling costs to be controlled |
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allows each participant to get full value of the benefit |
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has virtually no restrictions in coverage |
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has no monthly insurance premiums |
| PHSP?. . . a smart business tool indeed! |
For more information, please Email Us or complete our On-Line Request Form.
| An Example
Assume you have $1000 in medical, dental and/or prescription expenses.
Assume your marginal tax rate is the highest rate for BC - 43.7% and
your corporate tax rate is 17.5%.
Without a PHSP, you pay for the expenses with after-tax dollars. This
means you need to take $1777 in additional salary from your company to
net the $1000; ($1777 x 43.7% = 777 in tax). |
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Your company gets to deduct the extra expense of $1777 and thereby
reduces its tax bite by $1777 x 17.5% = $311. There is no deduction
or credit available to you on your personal tax return, due to the 3% of net income limitation.
The result is, the medical expenses cost you and your company:
$1000 + 777 - 311 = $1466
With a PHSP, your company pays the medical expenses plus
an administration fee of 10% = $1100. The company gets to deduct this
expense and thereby reduces its tax bite by 17.5% of 1100 = $193.
The result is, the medical expenses cost you and your company:
$1100 - 193 = $907
With $1000 in health care expenses, the saving is $559 this year alone,
......an easy decision for you.
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