Corporation, Joint Venture, Professional Corporation, Partnership, Not For Profit Organization or Association
If you are one of these types of business structures, you are eligible for a Private Health Services Plan (PHSP), regardless of the size of your business. You may be the only employee or have several employees, it does not matter.
These types of business structures are also permitted to set their own annual benefit limits for Employees (Plan Members), allowing the Employer (Plan Owner) to divide Employees into categories within the business structure, such as Executive, Management, Full-Time, Part-Time, etc. Benefit limits can even be structured according to whether an Employee is single or has dependents, making it extremely flexible and powerful.
If you are a Sole Proprietor, you must meet one of the following requirements to be eligible to expense your medical costs via a PHSP:
- Your net income from business in which you are regularly and actively engaged must represent at least 50% of your net income for the year
- Your net income from sources other than business should not exceed $10,000