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!
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.
Short Answer: No
The primary purpose of the Canadian Tax System is to collect revenue for the Government to fund essential services and programs. It is based on a progressive income tax system, which means that individuals with higher income levels are subject to higher tax rates. Also, keep in mind that the System is structured in such a way to minimize tax credits or payments to you personally.
Review this simple example below and decide for yourself: Source
Please note that the Medical tax credit you receive will always be less than your claimed medical expenses.
When comparing the results to a Private Health Services Plan (PHSP), you will be surprised to learn that, in all these cases, a PHSP would reimburse 100% of the medical expenses.
Ultimately, you should consult with a Tax Professional or Financial Advisor to determine the best option for your specific circumstances.
The Smartin Benefits Plan provides coverage to all Plan Members as specified by the Plan Owner:
- For the Plan Members to be eligible for this benefit, they must earn a T4 salary;
- The term Plan Members includes the Employee, the Employee’s spouse or any member of the Employee's household with whom the Employee is connected by blood relationship, marriage or adoption and living at the same address;
- There is no limitation by age;
- The Plan Members may claim eligible expenses incurred from the first date of their employment;
- Employees in the same Job Classification should receive the same Annual Benefits amount.
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.
No. Current or past health conditions do not affect your ability to enroll 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.
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 .
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.
It is important to note, that we are not an insurance:
- We administer claims for employees according to the Canada Revenue Agency (CRA) guidelines.
- The reimbursements of claims are funded by your Corporation.
- The CRA’s requirement for an employee to receive a Private Health Services Plan (PHSP) benefit is that they must be receiving a T4 salary in the same year.
Regarding employees who are on maternity leave:
- If you are not paying a T4 salary to an employee that is on maternity leave, then they cannot receive the PHSP benefits either.
- Every Corporation has their own Human Resource management strategies, for example:
- What is stated in the employee’s employment contract regarding salary and benefits during maternity leave?
- If the Corporation deducts the applicable Employment Insurance (EI) premiums from the employee’s wages, they might be able to apply for maternity and parental benefits throught the EI program.
CRA states that the EI program offers temporary financial assistance to unemployed workers.