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What is Private Health Services Plan (PHSP)?

A Private Health Service Plan
No Monthly Premium! No Rejections! No Annual Fee! No Medicals Required! Tax Deductible to your Company! Non Taxable to the Employee!

A Private Health Services Plan (PHSP) is a Canada Customs and Revenue  Agency (CCRA) approved health and welfare trust that allows self-employed individuals, limited partnerships and corporations to tax-deduct their health and dental expenses in a tax-effective and cost-efficient manner. The plan takes advantage of Section 248(1) of the Income Tax Act.

Health and Dental expenses can only be deducted through a third party administrator.

The purpose of the Private Health Services Plan is to enable employers to provide a non-taxable benefit to employees while deducting these expenditures.        

PHSP What’s in it for you?

As a small business owner, your health and dental expenses can be paid with pre-tax dollars through your company, creating a legitimate deduction. On a personal level, 100% of health and dental costs are reimbursed on a tax-free basis using the Private Health Services Plan (PHSP).                 

How Does Private Health Services Plan (PHSP) work?

You pay your health or dental expenses as you normally would. Your Business then pays (the plan administrator) a payment to cover the expense plus  10% administration fee (both of which are tax deductible).  then provides you (the employee) with a tax-free reimbursement of the expense incurred.

PHSP What is Covered?

How are Private Health Services Plans Regulated?

PHSPs are subject to Canada Revenue Agency (CRA) regulations which can be found in IT Bulletin 339R2 and IT-519R2 - Consolidated, Medical Expense,Disability Tax fall under the category of a private health services plan. (www.cra-arc.gc.ca)

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Please feel free to contact us with your questions about benefits, starting a new plan, or to arrange for a complimentary evaluation of your current plan.