Employee benefits is a constantly changing landscape of: (1) what benefits to provide and (2) how best to provide the targeted benefits. 

Traditional employee benefit plans can be restrictive by their nature and tend to force employers into a pre-designed (by the carrier) package that may or may not be right for each employee.  In addition, premiums are constantly increasing especially now after the cut backs in Pharmacare and the Medical Services Plan of British Columbia in January 2002 plus an increase in M.S.P. premium on May 1st, 2002. Oh, and let us not forget the recent introduction of Fair Pharmacare in May of 2003.

In reality, most small business owners, professional corporations, consultants and independent contractors who work on their own, do not have any health benefits.  Generally, they pay for their health care cost with AFTER TAX personal dollars.  However, this can be very expensive and in fact when properly arranged is not necessary.

In Canada, certain employment benefits are not taxable (or if you wish, Tax Free) even though many of them are deductible expenses to the employer.  The government is therefore providing an incentive to employers to provide these benefits since after tax returns are greater than straight salary. Dental and health benefit plans provided by an employer to an employee are considered tax-free benefits.  Therefore by using Canadian tax laws small companies can offer health benefits tax-free to their employees, while deducting the cost as a business expense.

A number of companies have designed cost-plus health/dental plans (in accordance with Canada Customs and Revenue Agency guidelines) that properly allows pre-tax corporate dollars to pay for its employee health care costs. Remember that a Private Health Services Plan is NOT an insurance plan, but is a way for the employer to self fund and pay for health and dental benefits with all the tax advantages of an insurance plan but with none of the restrictions.

The Plan maximizes the opportunity to fully utilize all health and dental services and take advantage of Canadian tax laws.  The purpose of the plan is to enable employers to (1) provide a benefit to their employees on a tax-free basis and (2) achieve a wider range of health and dental services more cost effectively than can be provided through a traditional group employee benefits plan.