What is FlexSave?
FlexSave is a tax strategy that allows incorporated and unincorporated (with arms length employees) businesses to tax-deduct their employee benefit plan health and dental expenses in a tax-efficient and cost efficient manner. It is designed to provide employees with a tax-free benefit for qualifying medical expenses they incur, paid for by their employer. The employer may be permitted deduct the full amount as an operating expense. FlexSave was formed using the guidelines set forth in Canada Revenue Agency (CRA)
Income Tax Bulletins – IT-85 R2, IT Folio: S1-F1-C1. IT-529 R2, IT-339 R2
Why FlexSave?
There are numerous reasons why a business may consider a program life FlexSave in lieu of, or in addition to, traditional death and dental alternatives.
- Currently paying health/dental care expenses personally
- Have investigated insurance but frustrated with expensive premiums
- Want to reduce or eliminate potential increases in health and dental insurance premiums
- Using the Medical Tax Credit through personal income taxes
- Cost savings comparison
What is the cost?
There is a one-time set up fee of $250 for the business. There are no premiums. There is a 10% administration fee (plus applicable taxes) on the eligible claim amount.
Who Administers FlexSave?
Hub Financial Inc. acts as the administrator for this plan.
Every tax situation is unique and can be quite complex. Clients should always seek independent tax advice before putting a FlexSave plan in place or deducting expenses related to FlexSave.
For more information, please refer to Tax Folio S1-F1-C1: Medical Expense Tax Credit available at the CRA website www.cra-arc.gc.ca
Disclaimer: Insurance, Investment and Mortgage products & services are provided by Devangkumar Shah.
Mutual Funds license sponsored by Shah Financial Planning Inc.
Lotus Loans and Mortgage ltd. is the principle mortgage broker.