Dental cleanings, prescription drugs, glasses, cavities, massage therapy, antibiotics, contacts….the list goes on and on. Your family spends thousands of dollars a year on medical costs that aren’t covered through OHIP (or your provincial plan). How do you pay for them?

Introducing Health Spending Accounts – the smarter way to pay for your health care!

If you’re self employed a Health Spending Account is a flexible, tax advantageous way to pay for your families medical costs. It doesn’t matter if you’re incorporated, unincorporated, or only have a business on the side. A health spending account might be a great solution to help ease the burden of some of your medical expenses.

Getting started is easy.

• Decide how much you want to deposit into your Health Spending Account, based on your families routine health needs.
• Deposit funds into your Health Spending Account as a business expense. The funds deposited reduce your business’ taxable income and are tax-free for you as an employee.
• Submit your claims to Benecaid to be 100% fully reimbursed* for all eligible medical expenses**.

Here’s an example:

Mike Jones owns his own construction company, MJ Construction. His 12 year old son is going to need braces in a few months. The estimated cost for the braces will be over $5,000. Using a Benecaid Health Spending Account Mike can save over $3,000!

How?

Mike deposits $5,000 into a Benecaid Health Spending Account, thus reducing his company’s taxable income by $5,000. Mike can then use the $5,000 (income tax-free) to pay for his son’s orthodontics. Without a Benecaid Health Spending account he would need to earn $8,835.48 to be left with $5,000 after income taxes and source deductions.

$8,835.48 (Earnings)

-$3,835.48 (Source Deductions: EI, CPP, Income Tax – assuming a marginal tax rate of 43.41%)

= $5,000.00 (Net Income to pay for orthodontics)

With a Benecaid Health Spending Account only needs to earn $5,795.59 to deposit. After administration fees and taxes Mike is left with $5,000 for the orthodontics and a total savings of $3,039.89!

$5,795.59 (Deposited into Benecaid Health Spending Account)

– $795.59 (Administration fees and taxes)

= $5,000.00 (Funds available to pay for orthodontics)

Want to learn more?

Go online – Benecaid’s online Health Spending Account calculator that allows you to see your potential savings and can be used to help you determine how much to deposit for you and your family – http://www.benecaid.com/health-spending-account

Talk to an expert – Lucy van Scheltinga is a Benefits Consultant that has been working with Benecaid for over 8 years. She’s helped hundreds of sole proprietors and business owners save money using a Benecaid Health Spending Account. She can be reached by phone 1-877-797-7448 ext 7265 or e-mail lv@benecaid.com.

Benecaid.

Health Benefits. Simplified

www.benecaid.com

* reimbursement is based on available funds within the account

**eligible medical expenses is in accordance with the rules governing the Medical Tax Credit – please visit the CRA website for a complete list by province/territory.