Cost Plus offers businesses* (incorporated business, partnerships and sole proprietors) a cost efficient and tax effective manner to pay health care services.

Cost Plus is an inexpensive solution to deduct health-related expenses eligible under the Income Tax Act.

Advantages for the Business:

• 100% Tax deductible
• No Monthly Premiums
• Employer decides the range and options
• Easy claims processing

Advantages for the Owner:

• 100% coverage of all health and dental care
• Tax free benefits
• Simple to administer
• Can supplement existing coverage
• Easy claims processing

Contact an Employee Benefits Specialist today.

* Some limitations apply

Cost Plus for the Unincorporated Self-Employed Business Owner with no employees

If you are a sole proprietor you are allowed to deduct specific amounts from your income depending on the number of dependents you have. Your deduction limited are as follows:

• $1,500 for yourself;
• $1,500 for your spouse;
• $ 750 for each child in your household under age 18; and
• $1,500 for each child in your household who is over 18 years of age and still a full time student

Example:  A family of four with two children under 18 would be allowed a total $4,500 per year comprised of $1,500 for each of the parents and $750 for each of the children.

Cost Plus for the Unincorporated Self-Employed Business Owner with arms length employees

If you have arms length employees (unrelated to you) on a full time basis your family deduction will be determined based on the coverage you provide to your employees.  In other words, the amount that you can deduct must be equal to what your arms length employees are able to deduct.

Example:  If you determine a dollar amount life $2,500 per year for your employee's family, then your family is also allowed the same amount per year.