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.
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).
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.