9:00 AM to 5:00 PM
Monday to Friday
appointments are suggested
If you are paying for your dental and drug expenses directly then you are paying too much income tax.
For Instance: Say you have a $3,000.00 dental bill to pay. You actually have to earn closer to $4,000.00 because you will need to pay approximately $1,000.00 in personal income tax on the $3,000.00 of earned income necessary to pay your dental bill.
The facts are:
Many small and large companies decide to set up a Private Health Spending Plan (PHSP) for their employees because there are no mandatory monthly premiums. Very simply, when an employee submits a medical claim to the employer the employer then adds a 10% handling/vetting fee to the claim i.e.
$1,000.00 + $100.00 = $1,100.00.
The entire $1,100.00 is tax deductible to the employer and the employee will receive back a $1,000.00 cheque "Tax Free" from the PHSP provider so that they are fully compensated for their medical/dental expenses. The employee is not taxed on the $1,000.00 refund cheque (that is the magical part). The company gets a $1,100.00 write off and the employee is reimbursed Tax Free.
See List of Eligible Expeditures
Note: There is normally a one-time Trust Account set up fee with Private Health Services Plan.
• No Monthly Premium
• No Medical Underwriting
• No Co-Insurance
• No Deductible
• Wide Range of Eligible Expenses
• No Upper Age Limits
• Inclusive Definition of Dependant
• Easy to understand
Contact: Rick Reynolds CFP. CLU, ChFC or Rob Reynolds GBA FPSC Level 1
Private Heath Services Plan Details download link
Please contact us if you have questions
or would like us to prepare a custom service
package based on your needs.
Tel : (250) 595-2419 Fax : (250) 592-4953
Victoria Office, #206 - 2187 Oak Bay Avenue
Victoria, B.C. V8R 1G1
North island Office, 3713 Shoreline Drive,
Campbell River, B.C. V9H 1L8
R. E. Reynolds Investments
& INSURANCE SERVICES LTD.
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