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SmallBiz Employee Benefits – FAQ – Benefits for 1-Person Organizations

By March 16, 2020 No Comments

Sunset With A Silhouette Of A Lonely Tree

Ahhh, the 1-Person Organization…What a great feeling to have the first and last word on everything!

After you have spoken to your Accountant to ensure that a Health & Dental benefits plan makes sense from a tax-perspective to implement for you and, if applicable, your family, then there are a few options for you to select from…

1. Individual Health & Dental Plans

This works well for the 1-Person Organization who is looking for Peace of Mind with some insurance coverage. A Medical Questionnaire will need to be completed. So you and, if applicable, your dependents need to be relatively healthy,  as the insurance company will decline or limit coverage based on how the Medical Questionnaire responses measure up with their expectations.

2. Health Care Spending Accounts

Why should you have to pay yourself $5,300 to have $3,000 in your pocket to pay for expected Health and Dental expenses? The Health Care Spending Account (HCSA) works well for the 1-Person Organization who is looking to pay for expected out-of-pocket health and dental expenses in a tax-effective manner. The HCSA also works well for those 1-Person organizations that have coverage through their Spouse’s plan but their Spouse’s plan doesn’t quite cover everything.

3. Administrative Services Only

The Administrative Services Only (ASO) Program works for you because you are a small business owner who is very confident about how much you are going to claim and on what products & services. You don’t want to be restricted by the set amount in an HCSA and you don’t want to be confined by the Individual Insurance company’s reimbursement levels and maximums. And as a plus, you will also have Emergency Travel and Catastrophic coverage…just in case. Get 100% reimbursement through an ASO Program.

Located in Cambridge, ON Sharkey Group Insurance  provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.