Local: 647-608-3341
Toll Free: 1-877-519-3640

 

PHSP HIGHLIGHTS
AT A GLANCE

100% deductible health and dental expenses

100% coverage with more eligible expenditures than group health plans

Easy set-up

No monthly premiums

Lowest administration rates in the industry

 

 

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McGill PHSPs (Private Health Services Plan)

A Private Health Services Plan (or PHSP) is not insurance. It is a clever tax-saving vehicle created by the Canadian government that lets small business owners and other self-employed individuals turn medical expenses (including insurance premiums) into 100% deductible business expenses. By setting up a PHSP through a third party provider (such as McGill Health Services), individuals can now process a wide range of medical expenses (for the entire family) through their business. This offers significant tax savings over paying for them with after-tax dollars.

PHSP's were once only available to corporations. Fifteen years ago, changes to the Canada Revenue Act extended the benefits of PHPS's to small business owners and other self-employed individuals. Surprisingly few are unaware of these changes and the dramatic tax savings they offer.

HOW IT WORKS

In the simplest terms, a PHSP is a trust account set up by a business owner or self-employed individual and administered by a qualified third party. The account is either pre-funded based on estimated expenses or funded on an as needed basis. When an individual or his or her family incurs a medical expense not covered by a comprehensive insurance plan, the receipt is submitted to the plan administrator and reimbursed from the PHSP, thereby becoming a 100% tax-deductible business expense. The list of expenses that are covered by a PHSP is extensive and spans many areas of traditional and non-traditional healthcare.

 A SIMPLE EXAMPLE OF POTENTIAL TAX SAVINGS 

THE PERSONAL INCOME TAX METHOD

 

Taxable Income

$60,000

$100,000

$120,000

Medical Expenses

4,750

4,750

4,750

Deduct 3% of taxable income to a maximum of $1,770

1,770

1,770

1,770

Eligible Medical Expenses

2,980

2,980

2,980

Medical Tax Credits

 

 

 

Federal (16%)

477

477

477

Provincial (6.05%)

194

194

194

Tax Credit

671

671

671

Net After Tax Cost

4,080

4,080

4,080

 

 

 

 

THE MCGILL PHSP METHOD

 

Taxable Income

$60,000

$100,000

$120,000

Medical Expenses

4,750

4,750

4,750

 

 

 

1,770

1,770

Eligible Medical Expenses

4,750

4,750

4,750

Tax at marginal rate

39% 

44% 

46% 

 

 

 

 

 

 

 

 

Medical Tax Credit

1,853

2,090

2,185

Net After Tax Cost

2,898

2,060

2,565

McGill PHSP Advantage

1,182 

1,420 

1,515 

FURTHER READING

Check out this interesting article by CBC News | Business: PHSP: The Best Health Plan You've Never Heard of

About Trillium

Trillium Health Services is a professional services firm that specializes in providing AFFORDABLE and FLEXIBLE Extended Health Benefits for entrepreneurs, self-employed professionals and small business owners. We serve thousands of customers across Canada, and our unique, OREA/TREB approved "Private Health Services Plan" (PHSP) provides individuals with a convenient way to not only meet their changing insurance needs, but also save taxes on their health expenses.

Understanding that different families and different individuals have different needs, Trillium Health Services has entered into partnerships with many of Canada’s Leading Health Insurance Providers that offer QUALITY Health & Dental insurance. We now offer a variety of plans designed to fit the needs and lifestyles of people of all ages, especially those 50 and over.

When you become part of our unique "PHSP" benefit program, you'll gain the added confidence of knowing that many of your health-related expenses, both routine and unexpected, are not only covered by one of Canada's leading insurance companies, but are also 100% Tax Deductible.

If you have any questions about Trillium Health Services, or would like more information about our plans and/or tax-saving vehicles, please don't hesitate to contact us.

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Privacy Policy

Trillium Health Services is committed to respecting the privacy and confidentiality of information it receives, in accordance with Trillium Health Services Privacy Guidelines, and applicable law. Trillium Health Services has established and will continue to maintain reasonable safeguards to protect the security and confidentiality of personal information.

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Contact Info

Trillium Health Services
2 St. Clair Avenue West, Suite 1800
Toronto, ON
M4V 1L5

Phone: 647-608-3341
Toll Free and Fax: 1-877-519-3640

information@trilliumhealthservices.com