Our PHSP Options
Small Corporate PHSP
Corporations with as few as one employee can set up a private health services plan, but shareholders must also be employees earning a T4 income.
Unincorporated Businesses Without Employees
Unincorporated businesses without employees cannot have private health services plans.
Unincorporated Businesses With Employees PHSP
Unincorporated businesses with employees can have private health services plans.
(Note: Private health services plans for an unincorporated businesses restrict the business owner's claim in any year to the lowest annual claim of any employee in that year.)
Canada Revenue Agency Press Release Regarding Shareholder Employees Earing T4 Income
For the purposes of the quoted statement below HSA's are the same as private heath services plans...
From April 18, 2019 CRA Press release...
"Incorporated businesses, including shareholder employees and all other corporate employees, are eligible to participate in an HSA. Corporations with as few as one employee can be eligible as well. However, the HSA cannot be solely for shareholders unless the shareholders are also employees earning a T4 income."
Why We Do Not Offer Online PHSP Sign-Up
At Coast Mountain Benefits we do not believe it is possible to properly set up and document your PHSP in a way that satisfies Canada Revenue Agency requirements until we get to know your business. Getting to know your business, in order to properly set up private health services plan, is simply not possible through an online registration process.
We believe that the number one key to establishing a PHSP that qualifies under the Income Tax Act, is appropriate documentation. Secondly, as every business is different in the eyes Canada Revenue Agency, each plan needs to be tailored to your business's particular circumstances.