For incorporated trades and owner-operators
Your company can pay for your family's dental, glasses and physio. Tax-free to you.
No group plan, so the dentist, the optometrist and the physio all come out of your own pocket, after tax. If your business is incorporated, a Private Health Services Plan lets the company pay those bills instead. The company deducts them and you receive them tax-free. No insurer, no premiums, and you only pay when you claim.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016
You are the benefits plan
No employer is paying for your family's dental cleanings or the kids' glasses. Right now it comes out of your drawings, after tax.
Hard work is hard on the body
Physio, chiropractic and registered massage therapy add up. They are all eligible, for you, your spouse and your kids.
Nothing to pay in a slow month
No premiums, no renewals, no monthly bill. The company pays only when somebody actually has a claim.
A worked example
An incorporated contractor with a spouse and two kids
$5,000 in a year on dental cleanings and a filling, two pairs of glasses, physio for a sore back and prescriptions. Marginal rate 30%, corporate rate 11%.
Paid personally
$7,143
earned before tax to have $5,000 left for the bills. $2,143 of it goes to income tax first.
Paid through the plan
$5,525
the bills, our 10% fee ($500) and GST on the fee ($25), paid by the corporation and deducted. You receive $5,000 tax-free.
Kept, every year
$2,248
between you and the corporation, after our fee: the personal tax skipped, plus the corporate deduction and the GST recovered.
Most trades businesses are GST/HST registrants and claim the tax on our fee back as an input tax credit, which the example assumes. An illustration, not tax advice; your salary and dividend mix, province and other credits change the exact figures.
Your numbers
What would it save you?
Three quick questions. Nothing you enter is stored.
Dental, glasses, prescriptions, orthodontics, physiotherapy, and more, for your whole family.
$5,000
2. How much tax do you pay on your last dollar earned?
Your “marginal rate”: combined federal + provincial, approximate; it varies a little by province. Just pick the income closest to what you pay yourself, or use the slider.
3. What income tax rate does your corporation pay?
Combined federal + provincial. Most owner-managed corporations pay the small business rate on active income, roughly 9–12%, depending on province.
Your estimated tax savings
$2,248
kept between you and your corporation, every year you claim, after our fee.
Where those savings come from
Today, without a plan
You pay personally
To put $5,000 in your pocket for the bills, your corporation pays you $7,143, because at your 30% rate, $2,143 goes to income tax first.
$7,143 total
With a Medallion PHSP
Your corporation pays directly
The same $5,000 of bills is paid by your corporation, plus our 10% fee ($500) and GST (5%) on the fee. You're reimbursed the full $5,000: no income tax, because it isn't income. A PHSP reimbursement is designed to be a tax-free benefit under CRA's rules.
$5,525 total (bills + $525 fee & GST)
And the corporation's books
The whole thing is a deductible business expense
The $5,000 of bills plus our $500 fee is fully deductible against your corporation's income, and the GST on the fee comes back as an input tax credit. At your 11% corporate rate, delivering $5,000 of health care ends up costing the corporation just $4,895 after tax, money that was never taxed in your hands either.
| Corporation pays out (bills + fee + GST) | $5,525 |
| Income tax saved on the $5,500 deduction (11%) | −$605 |
| GST recovered as an input tax credit | −$25 |
| Net after-tax cost to the corporation | $4,895 |
Many medical and dental professional corporations make GST-exempt supplies and can't claim the credit; untick the box and the GST on the fee is treated as a cost instead (still deductible). Your accountant will know.
Common questions
My business isn't incorporated yet. Can I still use this?
Not yet. CRA does not allow a sole proprietor to deduct a plan like this, so we only set it up for incorporated businesses. If you are thinking about incorporating anyway, ask your accountant, and come back to us once the company exists.
Is this insurance?
No. There are no premiums, no renewals and no medical questions. Your corporation pays the actual bills through the plan, plus our fee, and the reimbursement to you is tax-free. You pay only when you use it.
What does it cost?
A flat $375 set-up fee per plan, waived when you apply with a referral code. After that, each claim costs the expense plus a 10% administration fee, plus GST/HST on the fee. There is no minimum claim and no annual charge.
What can I claim?
Anything on CRA's medical expense list: dental, orthodontics, glasses and contacts, prescriptions, physiotherapy, psychology, massage therapy with a registered practitioner, and much more, for you, your spouse and your dependent children. The default limit is $15,000 per employee per year, with unused room carried forward twelve months.
How fast is a claim paid?
You upload the receipt in the portal, a person at Medallion reviews it, your corporation is debited, and the reimbursement goes to your personal account by EFT. Claims are reviewed by people, not an algorithm, and if anything is unclear we email you directly.
Ready when you are
The application takes about fifteen minutes online. Prefer to talk it through first? Book a call and a person will walk you through it.
- Reviewed by people, not an algorithm
- Your data is hosted in Canada
- 2FA on every login
- Administering PHSPs since 2016