If you’re paying your medical expenses with your after-tax money, you’re losing an average of $7 per business day in unnecessary taxes (sometimes much more) which cannot be recovered fully without a PreTax Health Spending Account.
The Secret Tax Benefit of PreTax Health
All of us have out-of-pocket medical expenses. Our experience shows that if you’re self-employed and incorporated, you could easily paying $5000 a year out of your pocket toward your and your family’s medical expenses.
If you claim this back on your personal tax return, you’re likely to get back no more than $400 or so. Also, if your personal tax rate is 30%, then you actually had to be paid around $7,000 in before-tax money, in order to end up with that $5,000 in your pocket after tax, that you then used to pay for those expenses.
With your PreTax Health Spending Account, you can instead arrange to have your incorporated small business use its before-tax funds to pay an expense of $5,500 (the amount of your eligible claim plus a 10% admin fee). Why the admin fee? Because we make sure it’s all legal according to Canada Revenue Agency’s rules, and we check all claims for compliance.
Compared with the $7,000 your business would have paid otherwise, your business has now saved $1,500.
Fully Automated On-Line Claims Management
Best of all, you don’t have to wait for a once a year to claim: you can claim 24/7 using our simple on-line system, and manage claims based on you and your company’s cash flow needs. We’ll even deposit your reimbursements directly into your personal bank account, should you wish.
Ready for Growth with employer Benefits
When your small business is ready to grow, you’ll already have in place the most cost-effective employee benefits program available to small companies. You’ll keep saving money, while establishing a reputation for excellent employee satisfaction. Learn more.