Private Health Services Plans

As a Canadian small business owner, whether you’re a sole proprietor or have one hundred or more employees, you can convert your family’s personal health expenses into tax deductible business expenses, and you can even cover your employees and their immediate family too.

It’s called a Private Health Services Plan or PHSP.

With a PHSP you can save hundreds or even thousands of dollars on: Prescription Drugs, Dental Care, Vision Care, Physiotherapy, and more.

Do I Qualify?

Qualifying for a Private Health Services Plan is simple.

Ask yourself these simple questions:

If you answered “Yes” to any or all of the questions above, then you are an excellent participant for a Private Health Services Plan.

What kind of expenses can be claimed?

With a Private Health Services Plan you can claim a wide range of eligible expenses including:

Prescription drugs
Dental procedures (including Orthodontic)
Optical procedures and supplies (including laser eye surgery)
Paramedical (including massage therapy, physiotherapy, chiropractic and naturopath)
Premiums (health and dental premiums for spousal group plans and travel insurance)
Other medical expenses (including MRI, CPAP machines and diabetic supplies)

In addition, with a PHSP you can garner additional savings when an employee is covered under a pre-existing spousal plan because a PHSP calls outside the coordination of benefits rule. This means all expenses for your employee and their dependents would be submitted under the spousal plan first, and any remaining balance can then be submitted through the PHSP process.

How does a PHSP save me money?

A Private Health Services Plan (PHSP) allows you to pay for 100% of your medical and related health expenses through your business (as opposed to incurring them solely as a personal cost). This means you are able to significantly reduce your tax burden by deducting 100% of your medical costs.

Additionally, you save money by avoiding high premiums associated with traditional health insurance. With a PHSP you only ever pay when you submit a claim. There are no hidden costs or annual fees.

By eliminating expensive deductible and co-payments you save money and aren’t strapped with products and services you don’t need or use.

PHSP Savings Analysis

Below is an example of a savings comparison between a medical expense paid personally vs. through your business. Let’s assume your corporate tax rate is 15% and personal tax rate is 43% and let’s also assume you have a medical expense of $1000.00

After Tax - Paid out-of-pocket Personally

After tax dollars is the amount remaining after personal income tax is paid. In this example’s tax bracket, the company will pay $2325.58 (including income tax), of which 43% is used to pay income tax ($1325.58) in order for you to pay this $1000.00 medical bill. To explain in detail, each $1.00 you spend on medical expenses would require your company to pay you approximately $2.33 before tax. The amount of 43% (or $1.33) is paid in tax to Canada Revenue Agency in the form of provincial and federal taxes.

Before Tax - Paid by Your Business

In this case, the medical expense is paid through your corporation as a before tax business expense. Effectively, your business is able to write off 100% of your medical expense. You save money by keeping the additional 43% tax inside your corporation. This means that for that $1000.00 expense, your company only pays $1050.00 to cover the cost instead of $2325.58; leaving $1275.58 in the company. On top of this, you get $1000.00 in your pocket tax free AND your company gets a tax deduction of 15% ($157.50) so the total savings is now $1433.08. The cost of the Health Spending Account (HSA) will vary by provider. In this example, the admin fee is 5% ($50.00 in this example). You would pay $50.00 instead of $1325.58 in taxes.

What is the cost?

Our fee structure is simple and affordable – all you pay is a one-time registration fee of $75.00, and a 5% administration fee on submitted claims.

There are no monthly or annual premiums to pay. No hidden fees.

The PHSP is used only when health related expenses are incurred, and you never pay for coverage you do not use or need.

Why choose AVFS?

Same-day Reimbursement

We are one of the only companies to offer same day reimbursements (when paying via Interac e-transfer). When you submit your claim to AVFS, we will send your company an invoice to illustrate exactly how much your paying (in case there are any disallowed items or miscalculations on your submission).

No Hidden or Ongoing Fees

At AVFS there are no monthly or annual premiums and no hidden fees. We never charge you for anything except our industry low admin fee.

Enhanced Privacy

We take the protection and security of your personal data seriously. At AVFS we regularly purge all our platforms (email, website, etc.) anywhere your information is stored within our system to ensure your sensitive personal information never gets into the hands of someone it doesn’t belong. In addition, we use industry standard encryption protocols to further protect and secure your information, and we never share your data with third parties, ever.

Lowest Fee

We pride ourselves on offering our clients one of the lowest fees in the industry. Our one-time registration fee of $75 is significantly lower than most of our competitors and we only ever charge a 5% administration fee on claims submitted.

No Hassle Digital Solutions

It’s the 21st Century and who needs more unnecessary paperwork? At AVFS we are a fully digital financial services firm meaning everything we do can be done electronically or from your mobile device – and of course – if you prefer the traditional paper approach, we do that too.

Payments

There are five ways you can pay us:

Interac eTransfer

Send us an Interac eTransfer to: info@avfs.tax for same day claim reimbursement.

Cheque

Mail us a cheque to:

37 Cranberry Avenue
Calgary, Alberta
T3M 0L9

Direct Deposit

Set us up for Direct Deposit using your EFT providers. Once the funds are received, we will issue the claim reimbursement the same day.

Credit Card

We can process a credit card, but we charge an additional 3.1% on all transactions under $500.00

PAD

We have partnered with Rotessa to offer our clients the ability to enter their bank account information securely in Rotessa's system. Funds are withdrawn from your account and deposited into ours. When we receive the funds, your reimbursement will be issued.

There are two ways to receive your reimbursement:

Interac eTransfer

We will issue you an Interac eTransfer to the email we have on file for the covered employee making the claim.

Cheque

We will mail a cheque reimbursement to the address we have on file for the covered employee making the claim.

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How do I Register?

Registration is simple. You can click below to open our registration form or you can click here to download the registration form and email it back to us to info@avfs.tax

If you are an existing AVFS bookkeeping client, the registration fee is waived.

If you are having issues with the Registration Form loading, open it in a new window here:

Need our help?
Please call us:

(403) 464-3932

We would love to see how we can help you save your hard earned money!

Registration Form

Please fill out all the fields to register for a PHSP with Accountable Value Financial Services. Your information will be securely transmitted but not stored on our servers.

Step 1 of 7

Company Information
Please fill out the information about your company.
Company Name*
Company Status*
Are you incorporated/limited/corporation or a sole proprietorship
- Incorporated / Limited / Corporation
- Sole Proprietorship
Address*
Street Address Address Line 2 City Province Postal Code
Phone*
Email*
Effective Date*
This is when you would like the plan to be effective. It can be any date, we suggest the beginning of your current fiscal year or the beginning of the calendar year.
MM slash DD slash YYYY
Business Number
Please supply your business number.

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Coverage Information
This section deals with coverage for yourself and your employees.
Class Coverage*
A Class is what we call the limits you can impose on your employees. You can have an unlimited number of classes.
Class Name Class Amount
Class Coverage*
As a Sole Proprietorship, you are limited to $1500.00 per adult in the household and $750.00 per minor in the household. Anyone can claim from this "household total". If you have other employees, and want to create limits, you may do so, but the first 2 classes are reserved for the $1500.00 and $750.00 limits respectively. A Class is what we call the limits you can impose on your employees. You can have an unlimited number of classes.
Class Name Class Amount
Fiscal Year End*
Your fiscal year end is when you close your financial records for one year and file your taxes.
Fiscal Year End*
Your fiscal year end is when you close your financial records for one year and file your taxes.
Benefit Year Start*
Your benefit year usually starts on the first day after your fiscal year end OR the beginning of the year. You can set this to be any day you wish. If you have employees, we recommend a calendar year (Jan 01) because employees are used to that with benefits.
Benefit Year Start*
Your benefit year usually starts on the first day after your fiscal year end OR the beginning of the year. You can set this to be any day you wish. If you have employees, we recommend a calendar year (Jan 01) because employees are used to that with benefits.
Coverage Allotment*
You can set up the employees starting year whether you want to give them full benefits regardless of when they start; pro-rated amount to the day they start; or a specified amount (you will provide the amount).
Regular Benefit Year*
Here you can specify the employees typical benefit year and how you want their benefits calculated. You can specify: Annual Amount (they receive their benefits on Day 1); Monthly Accrual (they will receive 1/12 of their benefits at the start of every month); Quarterly Accrual (they will receive 1/3 of their benefits at the start of every benefit quarter); Semi-Annual Accrual (they will receive 1/2 of their benefits every 6 months).
Plan Style
We currently have 2 styles of plans Standard - We issue an invoice after each claim is submitted. : Pre-Payment - We will invoice you for 1/12 of your total coverage limits and hold at least 50% of this amount on account from month to month.

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Terms of Service
1. In accordance with Subsection 248(1) of the Income Tax Act, Accountable Value Financial Services Ltd. (hereafter known as AVFS) by this document establishes a “cost plus” Private Health Services Plan with the Company named in Part A. AVFS indemnifies the Covered Claimants of the Company for all Eligible Expenses for the agreed upon cost plus fee to be paid by the Company upon remittance of claim by the Covered Claimant.
2. The AVFS PHSP applies to all Eligible Expenses. For this agreement Eligible Expenses are those defined in Subsection 118.2(2) of the Income Tax Act. These are outlined in Canada Revenue Agency Interpretation Bulletin IT-519R2 - Medical Expense Tax Credit Folio.
3. The AVFS PHSP covers all employees as defined by the Company in Appendix A. The term Covered Claimant includes the employee, the employee’s spouse or any member of the employee's household with whom the employee is connected by blood relationship, marriage or adoption. There is no limitation by age. The Covered Claimant will be eligible for coverage from the effective dates established in Appendix A.
4. The Company will establish an effective date after which coverage is provided by the plan. This date can be as early as the beginning of the current fiscal year of the Company.
5. The Company may choose to offer this benefit plan to Covered Claimants in differing levels of sponsorship based on the position or critical importance of the employee within the firm. The Company may not limit participation in the AVFS PHSP based solely on position as a shareholder. The AVFS PHSP cannot be offered to one employee of a class while excluding an employee of the same class. For this plan the Company has established the following classes of sponsorship. The members of these classes are established in Appendix A.
6. AVFS will adjudicate each claim submitted to ensure the following:
  1. The expenses are Eligible Expenses as per section 2
  2. The claimant is a Covered Claimant as per section 3
  3. The maximum coverage limits and dates as authorized by the Company have not been exceeded
  4. The claim form has been properly completed, authorized and the corresponding payment has been received
7. Upon completion of the claim adjudication, AVFS will issue an Interac eTransfer re-imbursement for the total cost of the eligible expenses to the claimant.
8. AVFS will issue an Annual Client Statement to the Company to reconcile all claims for tax reporting at the end of the fiscal year.
*
- I have read and accept the above
Signature*
By typing your name, you are registering with Accountable Value Financial Services for a PHSP plan
Email
This field is for validation purposes and should be left unchanged.

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Class Name	Class Amount

Class Name	Class Amount

First Name & Last Name	Street Address	City	Province	Postal Code	Phone Number	Email	Effective Date	Class Coverage	Employee or Spouse	Reimbursement Method (eTransfer / Cheque)

Private Health Services Plans

Do I Qualify?

What kind of expenses can be claimed?

How does a PHSP save me money?

PHSP Savings Analysis

After Tax - Paid out-of-pocket Personally

Before Tax - Paid by Your Business

What is the cost?

Why choose AVFS?

Same-day Reimbursement

No Hidden or Ongoing Fees

Enhanced Privacy

Lowest Fee

No Hassle Digital Solutions

Payments

There are five ways you can pay us:

Interac eTransfer

Cheque

Direct Deposit

Credit Card

PAD

There are two ways to receive your reimbursement:

Interac eTransfer

Cheque

Download a Sales Package

How do I Register?

Need our help? Please call us:

(403) 464-3932

Registration Form

Registration Form

Step 1 of 7

Company Information

Contact Information

Coverage Information

Employee Information

Referral

Registration Fee

Interac eTransfer

Cheque

Credit Card / Invoice

Waived by Referrer

How did you hear about us?

Terms of Service

Get In touch

Other Contact Methods

Fax

Phone

Mail

Need our help?
Please call us: