Frequently Asked Questions

This page contains frequently asked questions about coverage provided by Smartin Benefits in the form of a Private Health Services Plan (PHSP). Please use our Contact page to submit additional questions that are not covered here.
What is the monthly premium?

The good news is that there are no monthly premiums!

This is because the Smartin Benefits Plan is not an insurance.

We believe you should "only pay for what you need" when you need it!

What are the costs for the Smartin Benefits Plan?

All the Smartin Benefits Plan costs are covered by the Employer:

  • A one-time Enrolment fee of $99 (no taxes) for new plans,
  • Low 5% Administration Fee on claims, plus applicable taxes,
  • No hidden costs,
  • No monthly premiums!

If the grand total of your claim is less than $100, a $10 Administration fee, instead of 5%, will be charged.

Is it better to claim my Medical Expenses on my Personal Tax Return?

Absolutely not! Look at this simple example below and decide for yourself: Source

Claim Medical Expenses on Personal Tax Return Examples
What is A Private Health Services Plan (PHSP)?

A Private Health Services Plan is a Canadian tax-free vehicle for financing the health care costs of employees. They were introduced in 1989 by Canada Revenue Agency (CRA) in their interpretation bulletin entitled IT-339R2 . Today, they are one of the most popular forms of health spending accounts in the Canadian market.

Do I need to be in good health to participate or enroll in the Smartin Benefits Plan?

No. Current or past health conditions do not affect your ability to enroll in the Smartin Benefits Plan.

Are there age limits to participate in the Smartin Benefits Plan?

There are no age limits for employees. While the employees are still working for the Company, the PHSP coverage extends to their spouse and immediate family members.

Should I be incorporated to take advantage of the Smartin Benefits Plan?

Yes, any Canadian corporate company can take advantage of the Smartin Benefits Plan with the following exceptions:

  • The province of Quebec, which has separate legislation governing the taxation of health benefits.
  • Sole Proprietors - see next question.

There are different types of corporate names, and each name should consist of three parts or elements. These being the "distinctive", "descriptive" and lastly the "legal" elements. There are many legal elements some include "Ltd.", or "Inc." or "Corp."

For more detailed information about company types see this link .

What about Sole Proprietors?

The CRA lays out various criteria for a plan to qualify as a PHSP. One such rule is that the plan must be a "plan or contract of insurance". This has a very specific definition; there must be one party that indemnifies another party against loss in respect of an event, the happening of which is uncertain.

In an incorporated company, it is the corporation which indemnifies the employee or employees. Even if it is only a single-person company, the employee and the company are two different entities.

It is not possible for a sole proprietor to qualify under this rule, since a sole proprietor (wearing the hat of "business owner") cannot indemnify him or herself wearing the hat of employee; since they are legally the same person!

A sole proprietor (unincorporated company) can subscribe to a traditional monthly health benefits program, as there can then be a contract of indemnity or insurance between the sole proprietor and the insurer.

Let us help you maximize your PHSP potential!     587-352-9935|403-252-7202