Why You Need an Employee Contract

Posted on April 4, 2012 by T

Why You Need an Employee Contract

Many issues can arise when you act as an employer. You may have a problem employee such as one who never shows up on time or one who doesn’t work up to your standards. If you fire them, new issues can arise if the employee decides to challenge you. When you have an employee contract in place, you have more protection if the Employment Standards Branch becomes involved. What exactly should be in this contract and how should it be worded to ensure you are covered if a situation does arise? If you are concerned about creating this document yourself, a professional trained in labor law can be of great assistance.

Under the Employment standards act, employees are entitled to basic conditions of employment and basic standards of compensation among other things. Who determines what these conditions should be and what the standards of compensation are? A contract should spell this out so there are no questions if a dispute does arise. The same is true of the responsibilities of the employee. The contract should list the responsibilities so the employee cannot say he was unaware of what he was required to do under this job. The third advantage is that using an employment contract supports communication and clarity for both the employer and the employee.

Another area that should be detailed in the employee contract is any trade secrets and reputation guidelines that your company has in place. If you have a confidentiality clause, it will need to be spelled out here and the same is true of privacy language. No company wants to keep a disgruntled employee just to ensure he or she does not share information. If you find you have to let an employee of this type go you will feel more comfortable doing so with a contract in place. If they do violate the terms of the contract, you have a stronger legal standing when you go to seek recourse or if they refuse to cooperate.

You may feel that you can write a contract of this type without assistance. If you decide to go this route, you have to ensure that you understand the employee standards act and what it requires. The wrong wording can lead to the employee winning a dispute and your business being harmed as a result. A good contract will spell out everything from the employment standards for your province to harassment language and a required notice to end employment. You need these protections in place. Labour disputes are never fun or easy and your business could be irreparably harmed or lost completely.

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Small Business Tax Deductions Through a Private Service Plan

Posted on March 27, 2012 by T

Small Business Tax Deductions Through a Private Service Plan

Are you a small business owner looking to save money on your taxes? If so, you are in luck thanks to small business tax deductions. When you choose to make use of a private health service plan, you are the administrator. You will be responsible for reimbursing any medical receipts presented to you by employees and tracking any expenses associated with doing so. When you choose this option, you reduce the amount of income you pay taxes on and who doesn’t like to save money on taxes? Before you determine if this is the right option for you, you need to understand how the program works.

When you choose to make use of a private health insurance plan, you pay a one time set up fee. Many companies will allow you to divide this fee over two payments so be sure to ask for this option if you find yourself short on funds. When the plan is set up, each employee will be given an annual limit. As you are providing a limit for your employees, you have to set the same limit for yourself in a proprietorship. A corporation has the ability to set up tiers according to job description and level of responsibility. Your family may also be included in the health plan and they will have to abide by the same limit you and your employees do.

When an employee submits a medical receipt to the business, the business takes the money and reimburses the employee. This allows the medical bills to be filed as small business tax deductions. What makes the medical expense deduction so popular for businesses is it is an affordable health plan that covers a wide variety of services. You determine which streams you would like to have covered as you know best what it is your employees need.

The medical expenses tax deduction may be used for everything from nursing care to eyeglasses. If you or an employee find yourself in need of a service animal for a medical reason, not only will the cost of the animal be covered, his or her food and veterinary care may be written off. Voice recognition software is covered as are medications. As long as a medical professional deems it medically necessary, it may be written off. As you can see, this program is very inclusive and is a benefit to many businesses who find themselves in need of affordable care. Speak to a professional today about how a private health service plan will benefit your business. You should never pay more in taxes than you absolutely have to.

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What You Need to Know About the Medical Expenses Deduction

Posted on March 22, 2012 by T

What You Need to Know About the Medical Expenses Deduction

Business owners now have the option in Canada of owning a health plan. This allows the employer to deduct medical and dental expenses for both him or herself and any employees without the need for an insurance company. As insurance companies cost money and limit what will be covered, this is a viable option for any business looking to better control costs. When tax time rolls around, the owner will be reporting less profit and therefore be required to pay fewer taxes. There are many advantages to taking this Medical Expenses Deduction to consider before determining if it is the right choice for your business.

What is Allowed Under the Medical Expenses Deduction

When you are taking the Medical Expenses Deduction, you need to ensure that each deduction is allowed. The Income Tax Act defines what may be considered medical expenses. It also provides a comprehensive list of what may be written off using this deduction. In most cases, if a doctor agrees that an expense is needed to support your health or that of your employees, it may be written off. A prescription may be needed for verification.

Where to Turn for Help with the Medical Expenses Deduction

Revenue Canada provides a list of what may be considered a Medical Expenses Deduction. The one thing that needs to be remembered is that the list they offer is not exclusive. The list is designed to show what is clearly covered under the Income tax Act. It goes a step further though. It also interprets those areas which many find to be open to interpretation due to the generality. An Approved Medical Practitioners list is also available and, when making use of these two tools, you will find that you can save a great deal by choosing this option.

Why You Should Take Advantage of the Medical Expenses Deduction

When you choose to own your health plan, you choose which limits are needed to help keep costs down. This allows you to remain in control as you only select those health care streams which are needed by you and your employees. The Medical Expenses Deduction comes straight from business income and no premiums need to be paid. This keeps costs down for you and your employees. Tax free dental and medical expenses benefit everyone involved. No matter what type of business you run, be it a proprietorship, corporation or family owned business, this is one option you should definitely look into.

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Purchasing Small Business Health Benefits

Posted on March 13, 2012 by T

Purchasing Small Business Health Benefits

Affordable Health Care

Are you looking to provide affordable health care for your employees? Finding small business health benefits appears to be getting harder and harder to do. This is due to the limitations placed on policies such as refusing coverage for conditions, which are pre-existing. Your employees must have coverage now for this reason. This can really put a dent in your budget though as health insurance premiums are very high. Thankfully, when it comes to small business health benefits, owners now have another option.

Own you own Private Health Insurance Plan

A Private Health Service Plan, under the Income Tax Act, allows a business owner to self-direct and administer a plan. The business owns the plan and the limits are based on your personal needs. You have control over which health cares streams you are interested in. The only limitation is that it must be considered health care as defined by the government. As you are the plan administrator, you are allowed to deduct all of the medical costs from the income of your business. There are no premiums and no percentage that you turn over to a middleman. You pay for any health care that is needed and reimbursement comes directly from your company.

Small Business Deductions and Medical Expenses

To ensure you classify small business health benefits the same way the government does; you must be familiar with the Income Tax Act. This act breaks down what is considered a medical expense by the government. Some items will require that you obtain a prescription from a doctor to prove that the expense is directly related to your health care needs. A list of Allowable Medical and Dental Expenses is offered by Revenue Canada to help you determine what qualifies and what does not. Choose a company to support you in setting a health plan that will also support you with understanding and managing your plan.

Advantages of owning a Private Health Service Plan

If you are looking for a way to provide yourself and your employees with the coverage that you want and need, this is a smart way to go. There are many advantages to choosing this option and all should be considered so you can feel comfortable knowing you are getting the health care coverage for everyone involved with your company. By doing so, you can attract better employees, ones who have confidence working for you knowing that their health care needs will be taken care of. As a business owner you get your benefits tax free as an employee benefit, lower the taxable income of your corporation, take a lower income from the company and reduce your personal taxes as a result.

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Take Advantage of Small Business Deductions thanks to Health Plans

Posted on March 8, 2012 by T

Take Advantage of Small Business Deductions thanks to Health Plans

As a small business owner, you probably are facing some the same concerns that every business is facing, no matter what size they might be. Health insurance companies are changing the rules and limiting the amount of coverage that you can get for your employees. What’s more, they are restricting access to certain types of services and procedures, while still charging the same amount for health insurance as they did when they were providing much better service. You may be wondering what options you have, and you might be surprised to learn that there is an option you can consider that also provides you with small business deductions at tax time as well.

Private Health Insurance Plan

As a business owner, you have the option of setting up a private health service plan. This plan is something that works as a self-directed plan. In simple terms, you aren’t using a health insurance company to provide your health insurance; you’re providing it yourself and your business owns that plan. Now, the small business deductions don’t apply unless you actually provide insurance for an employee,  meaning they bring you a receipt so that they can be reimbursed, which can be a family member or someone unrelated to you and your business. Once you set up a plan, you can also purchase health insurance for yourself and your family, if you have access to an affordable health plan, and deduct 100% of those costs from the business. In essence, you are not personally paying for any of your health costs, your business is.

How do you set up a Private Health Insurance Plan?

Frankly, most of you will not have the ability to set up a private health service plan on your own. You’re going to need a little expert help to get it started. Choosing the right company to help you with this process is important, and you should begin by choosing a company that offers a free consultation for their services. This allows you to meet a representative of a company who offers business services and will help you to determine whether the products and services that they have to offer will benefit your company. What’s more, they can explain in better detail what you can expect in terms of your small business deductions; what’s allowable what’s not allowable and so on.

How much can you save in Small Business Deductions?

Setting up a private health service plan isn’t free. You do have to pay for health insurance premiums but you do have to pay the expenses that your employees incur, up to a limit, which you determined when setting up the plan for your small business. You save on premiums and the additional savings come in at the end of the tax year, when you file your taxes, you include the health expenses as part of your small business deductions. This is perfectly legal, and with the help of a business services company, you can learn everything you need to know about setting up a health service plan for your company, and getting the health care coverage that you need.

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If Money Can Be Saved Then Go For It With An Affordable Health Plan

Posted on March 1, 2012 by T

When it comes to affordable health plans there is one way to maximize your benefits and minimize your costs. There really is a way for you as a business owner to own your own health benefit plan and deduct your medical costs from your business income. This is a 100% deduction, which cuts out the insurance companies who profit from your premiums. Your health care is taken care of and you are reimbursed through your company. It really is that simple. You will also be able to provide your employees with first-rate medical care without the limitations of an insurance company and no premiums to pay. You set the limits and reimburse their costs.

You would be amazed at what you can expense with this affordable health plan. On the medical side there is hospital bills, dietician, laser eye surgery, pacemaker, insulin, osteopaths, wheelchairs, and more. In alternative health there is massage therapy, chiropractors, eye exams, physicians, prescriptions, acupuncture, hydrotherapy, and more. Your health care, and the health care of your family, can be paid with what is called pre-tax dollars, and that means you will be reducing your taxable income and will pay less to the government. Having a private health insurance plan is a win-win situation.

What might be helpful to know are things that are not considered medical expenses. In order for your affordable health plan to work properly you will need to know what is eligible and not eligible to claim as a medical expense. Some of these are athletic or fitness club fees; birth control devices that are non-prescription; blood pressure monitors; cosmetic surgery like liposuction, hair replacement or teeth whitening; diaper services; health programs; organic food; vitamins, supplements, over the counter medications; personal response systems and your provincial medical health plan.

One of the great things about this affordable health plan that you can give your employees is that they do not have to pay any tax on this benefit. This is a non-taxable benefit for the employee. No EI, CPP or Income Tax for the employee, that means no EI and CPP for you, the Employer. Medical and dental expenses are tax free to the individual receiving them. Another great thing is that when you deduct your medical expenses as a business it initially comes off the top, which means that you will immediately be able to lower your taxable income so you save the higher tax rate. For a Corporation, this means you can draw less from the company also lowering your personal taxable income. If you are interested in saving money, you will want to take the time to check out your options for an affordable health plan.

 

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Health Insurance – How to Get the Benefits You Need

Posted on January 6, 2012 by T

Why do people laugh when they hear the words Affordable Health Plan?
 Is it because they Private Health Insurance Planbelieve there’s no such thing?

 Is there really such thing as an Affordable Health Plan or is it all smoke and mirrors?

Yes there is and I am going to share with you how you can have an Affordable Health Plan!

Insurance companies are one of the top 3 richest businesses in North America. There is a reason for that. All you need to do is ask somebody who’s paid hundreds of dollars a month for a health care plan what their experience was like and you’ll understand why it is that insurance companies make so much money. They’ll tell you how so many of their prescription costs were not covered, only certain brand medications were claimable and others were not. Or how they’re only allowed 60 or 70% of the cost for some paramedical service and 80% of the user fee for others. Or, Sorry you have reached your limit. Are you confused yet? How about the common phrase, “Sorry, that’s not covered.”  Yes that is the story of trying to claim medical and dental costs through an insurance provider.

So what’s the alternative? Business owners do have an alternative in Canada. Under our income tax act a Private Health Insurance Plan is an option for Canadian business owners. This is an opportunity for a company to own and administer their own health plan. Home Based Businesses in Canada can really leverage this option.

Tax ReductionHow does this create an affordable health plan?

When you own and administer your own health plan you get to set the limits. Through the plan contract you decide the level of healthcare benefits for yourself and for your employees. Because there is no middleman there are no premiums to pay. In a Corporation you can set tears or levels of benefits. Upper management has a much higher pay level and much more responsibility, which allows you to also give them higher benefit levels. Proprietorship can create a plan and have it administered through a company like Gumboot Business Services. They also get to set their limits.

How does a private health insurance plan work?

Your medical and dental expenses become a business expense. You bring in your receipts and reimburse yourself through your company. When your employees bring in a medical expense receipts you simply reimburse them. If there are no expense receipts submitted, there are no costs. And because you set the limit in the health care plan you set exactly what each employee can expense and what your budget is going to be for the year.

A simple tracking system will allow you to keep track of exactly what each member of your family and employee has spent. This ensures that nobody goes over their limit, and keeps your numbers accurate for your year and income tax filing.

The other wonderful bonus with a private health insurance plan is medical and dental expenses paid for by a company to its employees are tax-free to the employee. No CPP, no EI for either of you and no income tax for the employee.

Can A Home Based Business Owner set up a Private Health Insurance Plan?

If you are a corporation, it’s easy. The way the legislation is written, you need an employee. As a worker in your corporation, you are the employee and that is all you need. If you are a proprietorship, you need an employee. Who is working in your business with you? Is your spouse or one of your older children doing web design or something that supports your business?

What about your personal health and dental costs?

As an employee of your own company, yes you can write all of your family’s health and Private Health Insurance Plan, Affordable Health Plan, Health Insurance for Small Business, Canada Home Based Business, Home Based Business in Canada, Private Health Service Plan, Sunshine Coast, Canadadental costs off through your business. This is what really makes an affordable health plan. You’re already paying out money for you and your family’s health and dental costs, now you can move those personal costs into your business as business expenses. That makes your personal medical and dental costs 100% tax-deductible.

Are there exceptions? What are the exemptions?

There is a difference between corporations and proprietorships. The biggest reason for this is that a proprietorship cannot have a contract with themselves. A proprietorship requires a separate company to administer the private health insurance plan. Because a corporation is an entity unto itself, it has the ability to have a contract with its employees. The other difference is a corporation can set tiers for different levels of employees. A proprietorship has to match the owners benefit level to the employees.

How do I find out more about Private Health Insurance Plans?

Gumboot Business Services will walk you through what is needed. We will look at your company structure to help you see if you are eligible and how much money you can save through owning your own health plan.  Come visit our site and take advantage of the free 20-minute consultation.

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2,700 tax files downloaded onto missing laptop

Posted on November 7, 2011 by T

The Canadian Press
Posted: Nov 6, 2011 2:52 PM ET
Last Updated: Nov 7, 2011 9:05 AM ET

The confidential tax files of almost 2,700 Canadians are missing after a Canada Revenue Agency worker in Toronto took them home and let a friend download them onto a laptop.
The laptop has disappeared, the agency is scrambling to rewrite its security protocols and the privacy commissioner is asking why no one alerted her to the breach in confidentiality.
“Our office was not informed about this incident,” said Anne-Marie Hayden, spokeswoman for Jennifer Stoddart, privacy commissioner of Canada. “We will be following up with CRA for further information on the issue.”
The investigation report, along with related documents, was obtained by The Canadian Press under the Access to Information Act.
The major breach occurred in early 2006, when an auditor in the agency’s Toronto office asked a government computer technician to download 37,488 of her emails and 776 documents onto 16 CDs. The confidential material covered the years 2000 to 2006 and was not encrypted as required by agency rules. Continue reading →

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Providing Benefits

Posted on October 13, 2011 by T

Employment law in Canada does not cover benefits because it is not covered in Employment Standards. Employment Standards cover the minimum and from there, Employers have a fair bit of freedom. Continue reading →

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Employment Contracts

Posted on September 8, 2011 by T

Labour Relations add a complexity to your business. It involves the law, relationships with others and leadership. Where do you want to take your business? Working with an Employment Contract will set the stage for open communication and relationship building. It can be a tool in setting up your own Private Health Service Plan. This short video will introduce a couple of ways your business can benefit from using Employment Contracts.

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