Unincorporated Businesses
There are a few additional requirements/rules that must be noted if the company in question is unincorporated, specifically surrounding setting of maximums and the requirement for the stop loss/travel medical coverage.
Unincorporated company maximums:
CRA places restrictions on the upper maximum benefit that can be provided to an unincorporated business owner at the total of $1500 for the owner, $1500 for their spouse and $750 per dependent child. The total sets the upper limit but claims can be split any way in which they occur (for example, there could be greater than $750 spent for the reimbursement of one of the children’s expenses in the year). The above amounts are based on the program being in place for the entire year. If the program is structured 6 months into the year, then the maximums would be 50% (#days plan in place/365 days) of the above ceilings.
If the unincorporated business has eligible arm’s length employees, CRA sets the owner's maximum in a differing manner. The owner’s eligible amount in this case would be the lowest cost-equivalent coverage provided to their least-favoured arm’s length employee. For example, if the owner provides only $500 to an employee, then their personal deduction ability will also be limited to $500 per annum.
Stop Loss/Travel Medical
CRA requires that there be an element of risk to the program and thus HUB requires that Stop Loss/Travel Medical coverage be taken out. With the protection provided by this coverage at low deductible premiums, it is recommended for all applicants, unincorporated or not.