Affordable Health Care
Are you looking to provide affordable health care for your employees? Finding small business health benefits appears to be getting harder and harder to do. This is due to the limitations placed on policies such as refusing coverage for conditions, which are pre-existing. Your employees must have coverage now for this reason. This can really put a dent in your budget though as health insurance premiums are very high. Thankfully, when it comes to small business health benefits, owners now have another option.
Own you own Private Health Insurance Plan
A Private Health Service Plan, under the Income Tax Act, allows a business owner to self-direct and administer a plan. The business owns the plan and the limits are based on your personal needs. You have control over which health cares streams you are interested in. The only limitation is that it must be considered health care as defined by the government. As you are the plan administrator, you are allowed to deduct all of the medical costs from the income of your business. There are no premiums and no percentage that you turn over to a middleman. You pay for any health care that is needed and reimbursement comes directly from your company.
Small Business Deductions and Medical Expenses
To ensure you classify small business health benefits the same way the government does; you must be familiar with the Income Tax Act. This act breaks down what is considered a medical expense by the government. Some items will require that you obtain a prescription from a doctor to prove that the expense is directly related to your health care needs. A list of Allowable Medical and Dental Expenses is offered by Revenue Canada to help you determine what qualifies and what does not. Choose a company to support you in setting a health plan that will also support you with understanding and managing your plan.
Advantages of owning a Private Health Service Plan
If you are looking for a way to provide yourself and your employees with the coverage that you want and need, this is a smart way to go. There are many advantages to choosing this option and all should be considered so you can feel comfortable knowing you are getting the health care coverage for everyone involved with your company. By doing so, you can attract better employees, ones who have confidence working for you knowing that their health care needs will be taken care of. As a business owner you get your benefits tax free as an employee benefit, lower the taxable income of your corporation, take a lower income from the company and reduce your personal taxes as a result.