I’m Self Employed and have no group benefits… What Can I do?

Ahhh… The Dilemma…

Do I stay in my job that I don’t like because it has great medical/dental benefits, or do I venture out, do what I’ve always dreamed of, start my own business and forever pay for my root canals and prescriptions out of my own pocket???

Go do what you have always dreamed of because my friend… you can have it all!  Most self employed individuals forgo the luxury of group benefits because of the advantages of being self-employed.  They pay cash (after tax personal dollars) when they go to their dentist, not knowing that there is a better way…

Enter the PHSP! – The Private Health Services Plan is designed to allow self employed individuals the luxury of paying for their medical bills with corporate dollars, and then using the medical expense as a write off against income.  In comparison to a traditional plan where you would be paying monthly, with a PHSP there is no monthly cost. 

Set up is under $400.00 (one time only), and you simply pay a 10% premium on top of your expenses as an administration fee.  What this means in english is that..

• You end up paying for your medical bills with corporate (or business dollars).  If you are incorporated, your marginal tax rate is lower, which means it COSTS YOU LESS.
• You now have medical expenses that you can write off against your income, which helps us fight the tax man.
• You aren’t paying for a monthly plan, only for when you have expenses. This minimizes your cost if you are using it for yourself, and minimizes abuse by employees who would otherwise max out their benefits (which makes your renewals more expensive).

Call your financial advisor, tax accountant or call me at 604 649-1185 if you would like more information.

To pay as much as everyone else…keep doing what you’re doing.  If you want to take advantage of a CRA supported program, let’s talk.

Enjoy your Friday!

Derek