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CRA APPROVED BENEFIT PLAN'S
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HEALTH AND DENTAL
BENEFITS
FOR
SMALL BUSINESS OWNERS
"ONLY"
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FOR THE BUSINESS
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100% Tax Deductible
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No Premiums
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Revenue Canada Back-up
and Support
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You Decide Range
of Options
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Fast Claims Processing
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FOR THE OWNER
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100% Coverage of
all Health and Dental
Costs
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Tax Free Benefit
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Can Supplement Existing
Coverage
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You Decide Range
of Options
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Fast Claims Processing
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"Let Me Explain How It Works"
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Ask yourself three
questions: |
- Do you own a corporation?
- Do you have medical expenses?
- Do you pay tax?
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WHAT IS COST PLUS
AND HOW DOES IT
FIT INTO A GROUP
BENEFIT PLAN?
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"Cost Plus"
is a means of providing
tax-free benefits
to an employer or
an employee if the
situation arises.
The company incurs
an eligible medical
expense (under Revenue
Canada Guidelines).
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FOR EXAMPLE:
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A Business Owner purchases
glasses for himself
and his family at a
cost of $1000 out of
his own pocket (i.e.
after tax dollars).
Depending on his personal
marginal tax rate, (at
40%) he would have had
to make approximately
$1675 in gross earnings
to buy the glasses.
If the Business
Owner wanted to pay
for the glasses through
his company, he could
use "Cost Plus" to make
it an eligible deduction
for the company.
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THIS IS HOW IT WORKS:
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Cost of glasses |
$ 1,000.00
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Administration
fee of 8% |
80.00
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Plus GST
on admin. fee |
4.00
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Paid to:
Cost Efficient
Benefit Plan
Ltd. |
$ 1,084.00
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Cost
Efficient Benefit Plan
Ltd.
would then pay the Business
Owner a personal cheque
of $1000 for the glasses
he purchased and also
issue a receipt for
$1085.60 to the company,
that is fully deductible.
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The advantage for the
Business Owner is, he
had a medical expense
taken care of, excluding
the high cost of personal
income Tax from Revenue
Canada. His company
has taken the advantage
of this total amount
paid to become an eligible
business deduction.
Win/Win Situation.
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This program is also eligible
for any employee. |
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| Tax
Regulations |
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HOW IS IT ELIGIBLE UNDER
THE TAX REGULATIONS?
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Under tax regulations,
incorporated businesses
can use the services
of a third party administrator
to "Cost Plus" eligible
medical expenses.
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1) COVERAGE
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4) REPORTING
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The plan covers, for
the people listed on
the enrollment form,
all hospital, medical
and dental expenses
that qualify as such
expenses under the Income
Tax Act of Canada "ITA"
and are not prohibited
by law. |
Within 30 days of the
end of each calendar
year or within 30 days
of a requested year
end, the Administrator
shall provide a report,
effective as of December
31 or at the date requested
which will reconcile
the Claims received
and paid. |
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2) CLAIM APPROVAL AND SUBMISSION |
5) TAX TREATMENT |
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The Administrator, on receipt
of a claim from the employee
of the Policy Holder, shall
determine whether the claim
is for an expense covered
by the plan. |
The characterization of
the Claims paid under the
ITA is a matter to be assessed
by the Policy Holder and
the Administrator.
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3) CLAIMS AND FEE PAYMENT |
6) GENERAL
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Upon receipt of an eligible
claim, the Administrator
shall issue payment for
the claim by cheque directly
to the individual listed
on the enrollment form and
shall provide notification
of such payment to the Policy
Holder if they are not the
same. In return the Policy
Holder shall issue a cheque
for all claims listed plus
the administration fees.
In essence, switching cheques. |
This agreement is governed
by the laws in force in
Alberta. If any provisions
of this agreement is changed
by the Federal or Provincial
Government; this will affect
the agreement of this form. |
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Once you have established your CRA Trust Account with your company, add Blue Cross plans for you and your employees.
These premiums are fully tax deductible and pay initial benefits direct to the practitioner: (plan maximums determined).
Your CRA approved trust can then reimburse the difference on your claim when submitted through the trust. |
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Please
click here to view and print the application for Blue Cross. After completing the application please fax it to:
Ogden Financial
403 228-0926
We will reply within 24 hours after recieving your application. |
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Current CRA List of Ineligible Expenses:
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- Acupressure
- Antiseptic diaper service
- Aromacare
- Body Talk
- Books, CDs, Movies, Music, Videos, DVDs, VHS
- Cord Blood Storage - ineligible as it is not related to an existing medical condition or disease and it not a diagnostic procedure.
- Electrolysis
- Fees - for
missed appointments,
memberships,
cancellations,
lateness, courses
- Gratuity (Tips)
- Hair replacement
- Health and
fitness programs,
expenses, therapy,
equipment, and/or
apparel
- Heat Pads,
Hot/cold gel packs
- Hot Tubs /
Whirlpools
- Hypnosis
- Ionic Detox
- Iridology
- Laser services
(such as hair or
tattoo removal)
- Liposuction
- Massage
Equipment (oils,
beds, chairs)
- Maternity
clothes, baby
photos
- Medical
expenses for
which you have
been reimbursed
or are entitled
to be reimbursed
from other plans
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- Nicotine Gum, Nicotine inhalers
- NLP - neuro-linguistic
programming
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Non-prescription
birth control
devices
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Non-prescription
reading/sun
glasses,
sunglass clips
- Nutripathic
Services
- Nutritional
foods and
supplements,
even when
purchased from a
Nutritionist or
Dietician
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Over-the-counter
medications,
supplements and
vitamins
- Payments to
a municipality
where the
municipality
employed a
Doctor to
provide medical
services to the
residents of the
municipality
- Pedicures,
Manicures,
Make-up
- Pillows,
Bedding
- Pre-payments
- Reiki
Treatments
- Rolfing
- Saunas,
infrared Saunas
- Scales for
weighing food
- Shoes,
Insoles
- Telephones,
Televisions,
Movie, Cable
Services/Rental
- Tens Machine
- Toothpaste,
toothbrush,
dental floss
- Tooth
whitening
procedures, kits
and strips
- Tuina
- Weight loss
products
- Yoga,
Pilates
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Personal
Work Sheet (PDF document
opens in new window) |
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