What is a Private Health Services Plan?
Whether you are a sole proprietor, small business, or incorporated company, with the Benecaid® PHSP you can offer your employees a comprehensive, non-taxable medical benefits package -- and deduct 100% of the resulting expenses from your business income.
How does it work?
Your company contracts with Benecaid®, the PHSP administrator, to pay tax-deductible expenses not covered by basic health and dental group insurance plans.
The reimbursement process is simple and painless:
- The covered plan member pays the medical expenses completely up-front.
- The member presents the original receipt(s) and claim form to the plan administrator who then submits it to Benecaid®
- Benecaid® then invoices the corporation for the full amount of the expense, plus 10% administration fee, and applicable taxes.
- Once the corporation pays the invoice, the provider then reimburses the employee/plan member 100% of the expense.
Some different conditions apply to unincorporated and incorporated businesses. The following chart summarizes them.
Benefits:
| Item | Unincorporated | Incorporated |
|---|---|---|
| Flat rate | ✓ | ✓ |
| % of income | ✓ | |
| Per family memeber | ✓ | |
| Non-taxable | ✓ | ✓ |
General
| Item | Unincorporated | Incorporated |
|---|---|---|
| Ex[emses" deductible | ✓ | ✓ |
| Funded/unfunded | ✓ | |
| Travel required | ✓ | |
| Insurance Cycke | Jan 1 to Dec 31 (may be proprated) |
365 days from anniversary of effective date |
Click here for important information for unincorporated businesses.
What are the advantages?
Expenses paid through a PHSP are 100% tax-deductible to the corporation.
Employees enjoy a tax-free benefit.
Out-of-pocket medical costs are turned into tax-deductible corporate expenses.
Provides additional coverage for employees.