Business Owners – Why pay for dental, medical, and eligible health benefits like massages with after-tax personal dollars when you could pay with tax-deductible corporate dollars and save 30% on average.
There is a better option, the Health Spending Account. It is a 100% tax write off, CRA approved, a pay as you go plan with $0 to sign-up, and very easy to use with the phone app.
What is it?
An HSA (Private Health Services Plan) is a Canada Revenue Agency approved method to provide medical, dental, and vision, and eligible health benefits in a tax-efficient manner. A corporation can write off 100% of the costs related to its HSA and all expenses reimbursed are tax-free to the employees. Employees can include expenses for their immediate family members on the plan. And you can use this plan as a corporate business owner with as little as 1 employee, yourself.
What expenses are covered?
A sample of eligible expenses include; medicine/drug, dental, massage, optometrist, laser eye surgery, chiropractic, acupuncture, naturopaths, psychiatrist, hospital, and many others. Contact us for the complete list.
How does it work?
You sign-up for the plan via the link below or by contacting MRG Wealth Management. It takes about 5 minutes and there are no sign-up costs. Once you sign-up, there is a simple phone app you use to submit any eligible expenses in 30 seconds and my team does all the work including validating the submission, transferring the payment from your corporation to your personal bank account, and providing you reports for tax time. You pay for the expense personally like you do today, submit the receipt to your Health Spending Account, then your corporation reimburses your personal bank account for the cost submitted. There is no cost to set up and no cost if you don’t use, only a 10% administration fee based on the claim amount to pay for this service.
How do I save money?
For example, you go for a $100 massage (registered massage therapist) and pay personally like you do today. At a 40% marginal tax rate, you would need to make $167 in your corporation to take out $100 after tax personally meaning that $100 massage took $167 in corporate revenue to pay for. Using the Health Spending Account, your corporation only pays $110, saving you $57. Most clients save ~30% on their health related expenses.
For additional information including short videos and to sign-up, click here
Contact us with any questions you have, we can provide you answers.