Frequently Asked Questions
Cost Plus covers all health-related expenses eligible under the Canada Customs and Revenue Agency Income Tax Act. You use pre-tax corporate dollars rather than after-tax personal dollars. It is a full write-off for the company and it is tax free to the individual.
Who are we and how is it eligible under the Tax Regulations?
Under tax regulations, incorporated businesses can use the services of a third party administrator to "Cost Plus" eligible medical expenses. BeneCo is a third party administrator of Private Health Services Plans (PHSP) commonly known as Health Spending Accounts (HSA) or Cost Plus plans. If you have an incorporated business, a limited company or sole proprietorship you qualify. You could be a single shareholder or have numerous employees.
Email address is http:/www.cra-arc.gc.ca. Open up Interpretation Bulletin - IT-339R2.
Definition of Private Health Services Plan outlined by Revenue Canada
Premiums are tax deductible by an employer if they are paid as "contributions made by an employer to or under a private health services plan on behalf of an employee and are excluded from an employees income from an office or employment"Back To Top
Incorporated Business Maximums - what is the maximum I can set?
Incorporated companies and organizations are permitted to set their own reasonable maximum annual limits. BeneCo suggests no more than 10% of your T4'd earnings. Back To Top For a list of some of the most common claims, click here.
How can I find out what the eligible expenses are?
BeneCo will provide a detailed outline in the package presented.
Should you wish to view the Revenue Canada website, please go into the medical expenses area under Section 118.2 (2) of the Income Tax Act, and Revenue Canada Interpretations Bulletins IT339R2 and IT519R? Broadly speaking, they include all reasonable and customary expenses for medical, dental, vision and general health care, provided by licensed facilities and administered, prescribed or supervised by licensed practitioners.
Specific exclusions would be:
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Experimental treatment, or treatment prohibited by law. Expenses eligible for reimbursement by Government Health Insurance or other Government assistance programs.
After BeneCo has received my claim how soon can I receive my cheque?
It takes about 24 -48 hours to process the claim and then expect normal mailing time for the area in which you reside. Back To Top