PRIVATE HEALTH SERVICE PLANS

FOR SOLE PROPRIETORS

A wide variety of medical and dental services can be covered under a Health Service Account:

Please review the document below for a complete list of eligible and non-eligible items:

PHSP-Eligible-Expenses.pdf

Income and Marginal Tax Rate	Tax Reduction using as a Tax Credit	Total Business Deduction Using a PHSP	Tax Reduction Using a PHSP	Net Tax Savings Using a PHSP Instead of Tax Credit
$40,000 (25%)	$193	$2,210	$552.50	$359.50
$60,000 (32%)	$50	$2,210	$707.20	$657.20
$90,000 (36%)	$0.00	$2,210	$795.60	$795.60
$130,000 (39%)	$0.00	$2,210	$861.90	$861.90

Deduction Limits are :

$1500 for Employee
$1500 for Spouse or common-law partner or household members (child/student – age 18 or older but still a dependent)
$750 per child under age 18

Complete the following: Application Service Agreement, Schedule “A” form (Company Information) and an Employee information form
EFT Form
Minimum 2 months “premium” or usage amount (Client will estimate the anticipated annual amount(premium) of services they may use, so as to determine the monthly withdrawal amount)
Startup Fee - $149 + GST (and other provincial taxes if applicable)
Void personal account information

The client has 2 options when sending in claims :

The client can mail the receipts along with the claims cover sheet to DHC for processing.
The client can scan and e-mail the DHC claims cover sheet and copies of the receipts to be claimed. DHC will adjudicate and process the claim, and will directly deposit the claim amount to the employee’s personal bank account.

Easy Reports for Filing Income Tax