Self employed individuals often struggle to find adequate health coverage that they can fit into their budget. As of 1998 self employed individuals and unincorporated companies are able to deduct premiums and other costs paid for health and dental from their income, previously this was paid for with after tax dollars.
We know what you’re thinking, “Okay, what’s the catch?” Well, okay there is one catch, but it’s a small one! You must have an insurance component as part of yourPrivate Health Services Plan (PHSP), and quite frankly, having Travel or Catastrophic Insurance is a good idea anyways!
In addition to having an insurance component to your PHSP you must also have a net income from businesses in which you are regularly and actively engaged that represents at least 50% of your net income for the year, and your net income from sources other than business must not exceed $10, 000.
Are you still with us? Good! We’re here to ensure that sole proprietors set themselves up for success, setting yourself up for tax savings is a great contribution to the success of your business.
If you have any questions about health and dental plans for your business or health beneifts in general, we are here to help! Click here to view our contact details.