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Financial Planning
PHSP - Personal Health Services Plan

The trees grow right to high tide
The trees grow right to high tide

In some situations setting up a Personal Health Services Plan can make sense. This type of plan allows the owner and the employees to have access to a certain amount of money each year to reimburse their medical and dental expenses. The money is held in by a Trust company and is received tax free by the employee or owner when original receipts are submitted.


In the 1998 Federal Budget, the Honourable Paul Martin improved a law (Section 248[1]) that allowed businesses to pay for their employee’s dental and medical costs and deduct those costs. Then, by running these expenses through a third party Trust, the business could have the employee’s receive these benefits tax free.

This is an employee benefit that allows businesses to offer medical and dental coverage to their employees in a cost efficient and cost–controlled manner. Employers who are ‘employees’ by nature of their business being an incorporated company may take advantage of the plan. Incorporated one-man businesses may set up a plan without other employees. One person Sole Proprietors may do so as well, but with certain limitations.

This plan gives Cost Control to the business and Cash Control to the Employee – a ‘win-win’ situation for everyone in your business!!

A special Health Trust that allows a business of any size, pay for all health and dental expenses, tax deduct them and still allow the benefits to be received tax free by the employees and shareholders
 
Gill, Chris and Kayla