Health and Dental Benefits

Solutions Option 2 enables the Sole Proprietor to deduct 100% of their personal and family's Health and Dental expenses on a Tax Free basis. There are no monthly premiums required.

HOW DOES SOLUTIONS WORK

Below is an example of a $1,000.00 expense and actions required with Option 2. Instead of a monthly premium, Imax charges a flat 10% administration fee based on the total claim amount.

An example of a health and dental expense and the subsequent steps involved with Plan TWO

WHAT WILL YOU SAVE

Savings will depend upon your province of residence and your marginal tax rate. The following example assumes a $40,000.00 Net income in BC and a total of $1,000.00 in expenses.

The total medical reimbursement of $1,000.00 plus the administration fee of $100.00 is a deductible expense for the Sole Proprietor. The Sole Proprietor using Option 2 will effectively reduce taxable income by $1,000.00 The tax savings realized amounts to $400.00.

Without Solutions Option 2, the Sole Proprietor could also claim their Health and Dental expenses through the Medical Expense Tax Credit (METC). In this example, the Sole Proprietor would receive no tax savings. The “NO PLAN METC” bar in figure 2 illustrates this example.

ANNUAL FAMILY BENEFIT LEVEL

CRA has fixed the maximum dollar amount that a Sole Proprietor may deduct in a given calendar year. The Sole Proprietor and eligible dependants over the age of 18 each receive a maximum deductible amount of $ 1,500.00 per calendar year. Dependants under the age of 18 receive $ 750.00 per calendar year. The maximum values may be combined for the family unit. For example, a family of two parents and two children has a total combined allowance of $ 4500.00. This amount may be claimed entirely for one child or distributed amongst the family as needed. The maximum value is fixed but the distribution is at the discretion of the Sole Proprietor.

WHAT TYPES OF EXPENSE ARE ELIGIBLE?

The Imax Solutions Health and Dental Plan does not restrict usage as Insured programs do. Click here to view a detailed list.

HOW TO START YOUR SOLUTIONS PLAN

First: Check off the 4 qualifying questions below.
Second: Provided you answered YES to all questions proceed with your enrollment.

Do you Qualify for Solutions Option 2

Please answer Yes to all 4 questions before proceeding with your enrollment.

I operate my business as a Sole Proprietorship with at least 1 employee.
More than 50% of my income comes from self-employment.
I earn less than $10,000 per year from other sources of income
The employees receive a T4 income from the business.

Accountants often recommend the Imax Solutions Plan to their small business customers. Join thousand's of Plan Members already using the Solutions Plan.

Get started now, click here to access our enrollment forms!

If you have any questions, please email us at imax@shaw.ca.