Cost Plus

Cost-Plus, also known as a Health and Welfare Trust, is a CRA-approved manner of allowing your company to disburse for the qualified health and dental expenses of its personnel.

Revenue Canada outlines in the Income Tax Act (Section 118.2(2)) that these expenses are deductible for tax purposes to the business, while at the same time the reimbursement to the individual is deemed a non-taxable benefit. In order to make such claims, a Health and Welfare Trust must be established and maintained.

Cost-Plus is an effective way to cover qualified health and dental expenses that are unclaimed through either an employee benefits plan or through Provincial Health Care plans.