Cost for Incorporated Business (Inc., Ltd., Professional, etc.)
Example when no NeoPlan PHSP involved
For employee with marginal tax rate at 30% to pay $1000 medical expense, corporation with no PHSP would have to be
remunerated with $1430.
For the employer it is 43% "surcharge".
Example with NeoPlan PHSP
If employee registered for PHSP has $1000 claim, the employer would have to submit to PHSP administrator a full payment
of $1000 + 8% administration fee $80 (or 5% in case of self-tax accounting $50)
plus GST/HST on administration fee (about $5.00), or whatever you provincial GST/HST tax rate is.
For the employer with PHSP in place it usually accounts for little less than 10% and is fully deductible to the corporation.
The difference with PHSP involved is quite impressive even with the one-time setup fee for the account for the business,
which is also considered as an expense for the company (Please see the Company Application Appendix B for the full fee schedule).
To get a feeling of expenses involved and to do some projections for yourself you can use our PHSP Calculator.
** Disclaimer: The content posted on this website is intended for general information purposes only and is not substitute professional or legal advice.