How It Works
I am a Business Owner
Bill White is an owner and employee of White Auto INC.
White Auto INC. has a plan with CanHealth and Dental.
Bill buys a pair of prescription glasses for $100 and sends the receipt to CanHealth.
CanHealth sends an invoice to White Auto Inc for $111.12* and a personal cheque to Bill Smith for $100.
Bill’s prescription glasses became a fully deductible business expense for White Auto Inc.
Bill saved CPP, EI, WCB and Personal Income Tax on his glasses.
* Based on a 10% fee
I run a business and am interested in employee benefits
Jane Doe is an employee of White Auto INC.
White Auto INC. has a plan with CanHealth and Dental and has set an annual maximum of $1000 per employee.
In the first year White Auto is invoiced $92.60/month* for Jane’s Coverage.
Jane Doe spends $270 on prescription drugs, contact lenses and birth control and sends the receipts to CanHealth.
CanHealth sends a personal cheque to Jane for $270 and informs her she has a remaining balance of $730 available for this year.
Jane does not use any more funds that year.
CanHealth informs White Auto INC that Jane used $270 and $730 in benefits is carried over to the next year.
CanHealth stops invoicing White Auto Inc as there is a surplus for Jane.
Next year Jane quits White Auto.
The surplus benefits earmarked for Jane remain in White Auto’s CanHealth account for use by other employees.
* Based on a 10% fee
Employees
Jane Doe is an employee of White Auto INC.
White Auto INC. has a plan with CanHealth and Dental and has set an annual maximum of $2000 per employee.
Jane Doe spends $540 on prescription drugs, contact lenses and birth control and sends the receipts to CanHealth.
CanHealth sends a personal cheque to Jane for $540 and informs her she has a remaining balance of $1460 available for this year.
Jane received $540 as a tax free benefit.
If her employer had paid her $540 as a wage she would have paid CPP, EI and Tax... leaving approximately $322 dollars for her to spend on health expenses.
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