T2125 - Group Insurance

I have a self employed client who has enrolled in C of C Group Insurance Plan. My question, can the premiums for EHC & Dental be expensed as employee benefit or would they have to go through the Medical Expense Tax Credit? Greater tax benefit if expensed directly on T2125. Life & AD&D is not being expensed but is part of the package.

Thanks and as always I am enjoying all the knowledge being shared.


Nope, unless paid as part of a PHSP.

Claim on the T1 Medical.

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I realize this is not a Private Health Service Plan. Would the premium for the Health & Dental portion be considered a Medical Expense as premiums?

“not a Private Health Service Plan.”

There is no qualifying credit for a “not a Private Health Service Plan.”.

See reference above by @SmallBizGuy

Not quite sure what you’re asking here. They would be qualified as Medical Expenses paid to a private plan on the T1, and subject to the usual 3% redux as other medical expenses.

The expenditure within the structure of the proprietorship are an owners’ draw against capital (if you’re using double-entry bookkeeping for it).

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Thanks @smallbizguy. I’m overthinking things and have put the H&D premiums under Medical expenses. I used to be an insurance advisor and specialized in Olympia Benefits PHSP’s for small business 15 years ago. Amazing how much one forgets when you aren’t doing it every day.

Thank you

I remember Olympia!!
Yes - that field has changed - and tightened - a LOT.