Renata Chow-Villanueva

Flat-fee plans cost less at high claim volumes; pay-as-you-go suits unpredictable use.

Advisors must verify PHSP qualification to avoid professional negligence claims.

Keep plan documents and claim records for six years to prove your PHSP qualifies.

Written documentation must precede any claim to keep employee health benefits tax-free.

Prescription vision devices and professional eye care qualify; non-prescription items do not.

Cost-plus health plans for sole shareholder-employees fail the insurance-risk test.

Whether a PHSP benefit is tax-free depends on whether the CRA deems you an employee or shareholder.

Failing to meet these tests turns tax-free reimbursements into taxable employee income.