A Health and Welfare Trust (HWT) plan facilitates self-employed individuals and incorporated companies through paying their health and dental expenses in a tax-effective and cost-efficient manner. A Health Trust works very differently than traditional group or individual health and dental insurance programs in that there are no ongoing premium payments required.
A company enters into a contract with HUB Financial Inc. for the indemnification of an employee’s health/dental benefits, whereby the company agrees to provide funding for these expense amounts and the applicable fees and taxes up to a limit the company sets in advance. The total amount paid by the company is 100% tax-deductible to the business and the employee receives a tax free benefit.
Eligibility
If you operate a business, are self-employed or an independent contractor, you are eligible. The business must be your main source of revenue as an individual is not able to create a company for the sole purpose of a health and welfare trust.
There are no minimums or maximum size requirements.
What`s Covered
| MEDICAL PRACTITIONERS | ||
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| MEDICINE & MEDICAL TREATMENT | ||
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| DENTAL TREATMENT | ||
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| OTHER EXPENDITURES (* requires prescription) | ||
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Note: If you have any questionable expenses not listed on the CRA website, please speak with your Tax Advisor.
The general guiding principle for eligibility is that treatment must be conducted for medical reasons, and not for cosmetic purposes. Procedures covered under traditional employee benefits would be covered under a Health Trust at 100%.
Other less conventional expenses that would not by typically be covered under a traditional benefits plan would be covered under a Health & Welfare Trust .
