Clews Benefits Management
“A Health and Welfare Trust (HAWT) is a tax-free vehicle for financing a corporation’s healthcare costs for their employees. It was introduced in 1986 by Canada Revenue Agency. It’s one of many options to consider when seeking methods of reducing tax for a company.”
Private Health Services and Self Insured Group Plans
Clews Management Insurance Backgrounds
Garnet started his career in the insurance industry in 1990. He worked with Cooperators as a Life and General insurance agent till 1999. In 1999 he left the Cooperators to become an independent Life Insurance agent, contacting with Great West Life.
He started administering Private Health Services plans in 2002. In 2006 he joined Kevin at Clews Management. Ramona (Garnet’s wife), with 10+ years in administration with Cooperators Insurance began administering the Private Health Services and Self Insured Group plans with Clews Benefits Management in 2002 and remains today – working alongside Garnet in administering all the Clews Benefits programs noted below.
Private Health Services Plans (PHSPs)
A PHSP is a bank account established exclusively for the purpose of health care spending. They are a part of the family of health spending accounts in the world of group benefits in Canada.
A PHSP is an arrangement through which an employer can provide certain benefit programs to employees, as defined under the Canada Revenue Agency (CRA) guidelines. One or more employees may be covered under an PHSP. A PHSP is a specific trust that satisfies certain requirements as set out in CRA guidelines.
These requirements are as follows:
- The funds of the PHSP cannot revert back to the employer or be used for any purpose other than providing the health and welfare benefits for which the contributions are made;
- The employer’s contributions to the fund must not exceed the amounts required to provide the benefits;
- The payment made by the employer cannot be made on a voluntary or gratuitous basis. In other words, once the payment plan is established it cannot change during the policy year. The contributions must be enforceable by trustees should the employer decide not to make the payments required;
- The trust is a legal arrangement between the employer, a third-party acting as the administrator and an independent trustee. The expenses to be paid out of the trust must qualify as medical expenses as defined by CRA (specifically subsection 118.2(2) of the Act).
In addition to PHSPs (the ability to make your medical and dental expenses tax deductible if you are self employed), we also offer: Life Insurance; Disability Insurance; Group Insurance; and Self Insured Group Insurance (Life and disability with an insurance company, self insure the medical and dental).
We are also able to work with you other advisers to help with your Farm Succession Plan.