What is a Private Health Services Plan ?
CCRA has established guidelines to allow employers to offer reimbursement to employees for medical and dental expenses. The mechanics of the plan are as follows: 1. an employee incurs a medical expense which he pays himself. 2. The employee completes a claim for the medical expense and submits the claim to PHS Adminstrators for processing. PHS issues a cheque to the employee for 100% of eligible medical expenses. 3. The employer pays PHS Administrators the amount of the claim plus a 10% administration fee plus applicable GST. The end result is that the employee has received a tax free employee benefit and the employer has incurred a allowable expense to reduce taxable income. |
