Qualifying for Employee Health Benefits

Who Qualifies For Aquilian Benefits Plans?

Anyone in a business in Canada can make use of an Aquilian Benefits Private Health Services Plan (PHSP) to reduce their taxes and contain their health benefit costs for employees.

You qualify for an Aquilian Benefits Plan in these situations:

1. Corporations: Limited Companies, Professional Corporations

The size of the company does not matter. From small, one-person consulting firms to a business with hundreds of employees; they all qualify. If you or your employees have medical expenses, you qualify. For corporations there are no restrictions on the amount that can be claimed in any given year, except the annual limits you set for each class of employees.

  • Small “non-arms-length” companies can reduce their owners’ personal taxes substantially.
  • Larger businesses with employees can offer affordable health benefits to help retain staff.
  • If your company already has a health benefit plan you can use an Aquilian Benefits Plan to cut the rising premium cost of your existing benefit plan.

2. Unincorporated: Self-Employed, Sole Proprietorship or Partnership

Although unincorporated businesses have some restrictions, you can still benefit from an Aquilian Benefits Plan. To qualify, you must be actively engaged in your business on a regular and continuous basis AND in the current or previous year:

  • Derive more than 50% of your total income from the
  • self-employed business, OR
  • Your income from sources other than self-employment is $10,000 or less.

[For the purposes of this calculation, “income” is your Net Income (Line 233) with some exclusions. The specifics are described in the Canada Revenue Agency T4002 Guide.]

For unincorporated businesses, there are also restrictions on the amount that can be claimed by the business in any given year:

  • $1500 for the owner/manager
  • + $1500 for the spouse
  • + $750 for each child under 18
  • + $1500 for each additional member of the household that is 18 or over

These limits are pooled for the whole household, so that no one individual is limited to any amount, as long as the household limit is not exceeded.

These limits can be exceeded if the unincorporated business has additional “arms-length”, unrelated employees who are included in the Aquilian Benefits Plan.