Download OLYMPIA TRUST Private Health Services Plan

BUSINESS OWNERS &
CORPORATIONS
nbBenefits
Health Spending Account
Why Pay More?
Health Spending Account
What is it?
 A method to provide health
benefits for business owners
and their staff
Topic of Discussion
Who is eligible?
 Benefits
 Costs to Employer
 Compensation for You

Eligibility

Self-employed, Incorporated,
Limited Companies or Charitable
Organizations

Employee Size (1 or more)

For employees and their
dependents.
1) Small Incorporated Business (1-5 Employees)

Provide tax free health benefits
to owners and their employees

Costs are 100% tax deductible
to the business

The company designs the
plan.
Health and Dental Plan

No physicals, No age limits and No
pre-existing condition exemptions

Pay as you go – no monthly
premiums required

Plan can be modified specifically to
an employee and their dependents’
health care needs.
Employee Benefits
Covers 100% Revenue Canada
Approved Medical and Dental
Expenses including:






Laser eye surgery
Glasses
Orthodontics
Prescription drugs
Naturopathic
Alternative treatments and more
Employee Health & Dental Benefits
Adds Health spending $$ to
employees’ current health plan.
 Recover premiums from
existing health plan coverage
 Claims are processed online or
through iphone or Android
APP’s & paid quickly

A
Great Tax Planning Tool!
Employee Wellness Benefits

Adds Wellness & preventative care $$ to
employees’ current health plan
 Employer designs the plan but Employee can
allocate per year the % & Type of Benefits for
their personal use
 Eg. – Daycare, Gym membership, Alternative
Health Care, Personal Development Courses,
Fitness Training, Equipment
 Benefits are taxable to the employee, however,
provide an excellent value to employee retention
while they stretch the employees’ $$
Costs

Set-up Fee $350 + $40 per
employee + GST

Catastrophic & Travel $105/year

Expense Cost + 10% + GST
BUSINESS OWNER VS EMPLOYEE
BUSINESS OWNER
EMPLOYEE
REVENUE
INCOME
EXPENSES
TAX
TAX
EXPENSES
NET INCOME
NET INCOME
12
Employee has a $3000 Dental Expense (1-5 employees)
WITHOUT HEALTH PLAN
$5000 Salary Less $2000
Taxes (40%) =
Net Salary $3000
 Employee pays the
Dentist
No Re-imbursement!!!

WITH HEALTH PLAN
Employee pays Dentist
 Submit Expense receipt
 Company pays Plan
Provider 110% of expense
= $3300
 Employee is reimbursed
$3000 Tax Free!

2) SELF – EMPLOYED (no corporation)
Limited to $1,500 benefit per
adult and $750 per child (under
age 18)
 Catastrophic + Emergency
Travel Insurance $105/year
mandatory

3) Benefits for a Large Business (> 6 EMPLOYEES)

Employer sets benefit level
 Benefit levels may vary by job
classification, reducing overall
costs
 Can provide employees with a taxfree top up to their existing health
plan
 Can be offered as an incentive to
different levels of employees
PRACTICE FINANCIAL MANAGEMENT
DAILY
SAVINGS
VACATION
FUND
CASHFLOW
EQUALIZER
PROTECTION
FUND
GROWTH
FUND
16
Compensation to Field

nbBenefits HSA 50% ($350 + $40
per employee) + 3% claims
submitted by the employees, then it
goes through the Grid
 Referrals may be made to
specialists and compensated for
those referrals
YOU HAVE OPTIONS…
Buy Sell
Agreements
You Die I Buy,
I Die You Buy
Key Person
Insurance
Provides $$ To Keep Company
Running in case of Death or Disability
Universal Life
Insurance
Split Dollar
Critical Illness
Insurance
Survive and have $$
Company Still Thrives
Disability
Insurance
Monthly $$ If
Hurt Or Sick
Coverage Today,
Use Your $$
Tomorrow
AND SOLUTIONS…
Contingency Fund
Succession
Planning
Office
Overhead
Debt
Management
Health
Plans
Group Benefits
BUSINESS
OWNER
RELATIONSHIP MARKETING
Home & Auto
Insurance
Mortgage
Brokers
Accountants
Banker
Tax Planning
Specialist
Investment
Broker
Insurance
Broker
Succession Plan
Specialist
Estate Planning
Specialist
20
Additional Benefits
nbWorkshops –
 Traditional Health & Dental
Insurance Individual & Group plans
are available
 Eg. Group Home & Auto Insurance
 Additional Benefits to follow - keep
watching

nbBenefits Mastermind Group
nbTV beginning March 27th time to
be determined
 Group across the country to work
together to roll this program out
 Product providers will be available
for training and to answer
questions
 Marketing material will be
developed or is readily available

Together, We are the Best