Cost Plus is a tax-effective way for an employer to pay for an individual’s claims that are not covered under the group benefit plan. This program is usually provided for incorporated business owners and other executives.
Unlike the traditional fully insured group benefit plan, Cost Plus is a self-insured program, paid with corporate dollars on a claim-by-claim basis.
Cost Plus covers medical and dental expenses that qualify under the Income Tax Act.
Advantages of Cost Plus
- Benefits paid to an individual are non-taxable
- 100% tax deductible business expense
- No monthly premium payments required
- Covers a more extensive range of services and expenses than a group benefit plan
- Broader definition of an eligible dependent
Cost Plus Forms
Before implementing a Cost Plus program, we strongly encourage you to consult with your professional tax advisor. You want to be sure that you are eligible to implement a Cost Plus program; and, before any expenses are submitted for reimbursement, you need to be sure that these expenses are eligible. For a complete list of eligible medical expenses (form IT-519) you can visit Revenue Canada's web site at www.cra-arc.gc.ca or by calling 1-800-959-2221.
Contact us for more information on our Cost Plus Program.
