If you are a business owner you should think about opening a health spending account.

 

If your business is incorporated and you pay yourself a T4 income you can deduct dental, medical and prescription drug expenses as a business expense by setting up a Health Spending Account. Not only are the expenses a deductible business expense but the benefit is tax-free.

 

You, your dependents or other employees do not pay any tax on the benefits paid by the company – it’s a win-win!

 

If you have employees a Health Spending Account is a great alternative to insured group benefit plans.  Many business owners are reluctant to offer their employees an insured plan because the plans tend to get more expensive over time. With a health spending account an employer can offer each employee a fixed amount. Once the benefit limit is reached that's it, the employee will have to pay personally for any additional expenses. It is a great way to provide benefits to employees and stay on budget.

 

Read the CBC article here: Health Spending Accounts.