I was speaking with a SmallBiz Owner yesterday and she said that she lets her Accountant take care of her and her co-owner husband’s medical and dental expenses…on their Personal Income Tax submission.
This may make sense in their particular tax situation…I’m not a tax expert…but after telling her about the tax-effectiveness of a Benefits Plan, she said that she would definitely speak to her husband and then their Accountant to make sure they’re not missing out on any tax savings.
What peaked her interest was the fact that,
- if you ever take a look at that line on your Personal Income Tax submission, the Income Tax Credit never seems to add up to much.
- if, for example, you know that you are going to have even around as little as $1,000 in annual medical and dental expenses, then you also know that you are going to have to generate around $1,400 in product/services Revenue to put that $1,000 in your pocket.
- she doesn’t want insurance…she has looked into it before and it’s too expensive. BUT, she is very interested in the Health Care Spending Account for a more tax-effective way to cover off their expected expenses.
Have a chat with your Accountant to see if it makes sense to implement a Benefits Plan. A Health Care Spending Account could be the answer, if you’re looking for a more tax-effective way to pay for your expected medical and dental expenses
Located in Cambridge, ON Sharkey Group Insurance provides independent Employee Benefits advice & counsel for Small Businesses across Ontario.