What is a private health services plan ("PHSP")?
Simply put, a PHSP is a private dental and health care plan. It is a form of tax relief that is exclusive to Canada and allows 100% of medical and dental costs incurred by you and your employees to be expensed by your business. In turn, the PHSP returns the amounts paid, to you and your employees, tax free. Canada Revenue Agency (CRA) legislated Private Health Services Plans as a way for Canadian businesses to incent their employees by providing a tax effective, comprehensive, and affordable dental and health care plan option. They are particularly suited to small and medium sized businesses. A Private Health Services Plan is sometimes referred to as a health and welfare trust or health spending account.