Are you a small company? Are traditional health and dental plans not viable for you? Would like more tax deductions? A private health services plan from Olympia Trust may be a fit for you and your business.
I do not spend enough per year to warrant the monthly cost of a traditional health & dental plan. There is only myself and Wayne now – kids are all gone – so our medical expenses are limited. As we baby boomers get older – it seems there are more trips to the massage therapist and chiropractor – these receipts are eligible under this plan.
Traditionally, you would deduct any excess medical receipts on your income tax. The medical tax credit offered by CCRA is only available after you’ve spent the lesser of $1,844 per year or 3% of net income. The tax credit available in BC is 22% of expenditures – regardless of your tax bracket. I do not reach that amount – so it is to not a viable tax break for me. However being able to get back a receipt for $50 – $1000 to deduct from my taxes, is a real benefit to me.
Here is an example of how the CCRA tax credit works:
• Net Income: $80,000
• Medical Expense: $3,000
Tax Rate 39.7%
Medical Tax Credit Available
• The lesser of $1,844 or 3% of $80,000 $1,844
• Amount of Health Expenditure: $3,000
• Less the exempt amount: $1,844
• Eligible amount for tax credit: $1,156
• Amount of tax credit (22% of $1,156) $255
The private health services plan from Olympia Trust may be a prescription for savings for you. This plan reduces your company’s taxable income by converting all out of pocket medical and dental expenses (including premiums paid to your firm’s group health & dental plan) into a tax deduction for the company.
Private health services plan will allow coverage for services that traditional insurance programs may consider ineligible.
Eligible Expenses include:
• dental expenses (including major work crowns and orthodontics)
• vision care expenses (including contacts, eye glasses and laser eye surgery)
• prescription drugs
• alternative treatments (acupuncture or naturopath)
• any type of surgery
• chiropractic / massage therapy
• premiums paid to a traditional insurance plan
• travel for health reasons
Here is how it works:
Pay your medical and dental expense personally (eg. $3000.00)
Send the trust company the receipt along with a cheque for the full amount of the expense plus a 10% administration fee ($3300.00)
Olympia Trust will immediately send you back a personal cheque for the original amount ($3000.00) as a non-taxable employee benefit and your company can deduct the full $3300.00 as a business expense.
In Canada, health and dental plans provided by an employer for the benefit of an employee are tax free. Therefore to qualify there must be an employer/employee relationship. The size of the business is not a factor. With a private health services they can administer a plan for one person companies to corporations with hundreds.
Your choices, your plan, your savings. There are no hassles, no monthly premiums, and no interference from insurance companies. There is a one time sign up charge.
Call me for more details!