Sole Proprietor / Partnership
Sole Proprietors and Partners in Partnerships have somewhat limited options when setting up a benefits program. Insurance benefit programs are available but are costly. MediDirect® provides cost effective options to Sole Proprietors and Partnerships.
Benefit options available to each employee are:
- Individualized Benefits
See [Button to Insurance Options for Small Business] to see a less costly approach.
MediDirect® can also provide you with access to full benefits to attract and retain valuable employees. Call us to discuss.
There is significant tax savings for owner managers when using a Health Spending Account versus claiming medical expenses on your personal tax return. Check your savings potential by checking out the Tax Savings Calculator
Sole Proprietors qualify for Health Spending Accounts/Private Health Service Plans, but, qualify by an employee formula. The formula requires that there is at least one arm's length employee, to the Sole Proprietor, that is covered under the plan.
In addition, a non-incorporated business, sole proprietorship or partnership has Canada Revenue Agency suggested maximum annual limits in the cost-plus portion of their benefit program. They are $1,500 for the owner-manager employee plus $1,500 for their spouse and dependents over 21 and $750 per dependent under 21. If the sole proprietorship employs non-owner employees, then the limit is the greater of the above imposed limits or the benefit limits you provide to other employees.