The
Initial Fee
is charged just once to initiate the contract and your
PHSP.
The
Monthly Fee
is not charged per employee, rather it is a flat monthly fee determined by which Service Plan you are in.
The more times you and/or your employees submit a batch of medical/dental receipts the
higher your Service Plan will need to be. Basically the
number of the Service Plan indicates the number of times that you and/or employees can submit a batch of claims to
Bene-D-Duct
during your fiscal period.
For example, Service Plan 10 means you and your employees are allowed to submit a combined
total of 10 times (or a little less frequently than once per month). If it is more convenient to submit more
frequently you may do so but you would be charged the higher Service Plan fee. Or correspondingly, if you
are able to stockpile more receipts and submit them only 5 times per year then the Service Plan can be
lowered. It's up to you how frequently receipts are submitted and what level your Monthly Fee is charged at.
Please note that there is no advantage in combining two employees' receipts into one submission
since they will be counted as two separate Reimbursements anyway, as separate cheques need to be issued. Combining receipts
from the same family is worthwhile since only one cheque is issued (to the employee whose family it is).
The
Percentage Fee
is either 10% or 12% of any
Contributions
made, depending upon whether it is over or
under $80. It is not charged on that portion of the Contribution that is used for Provincial Sales Tax, if applicable.
The
Overdrawn Fee
is a small fee to offset the cost of notifying you that your
Accumulation Account is overdrawn or would be overdrawn if all Reimbursement Cheques are issued. If you keep your
Accumulation Account with a reasonable balance then
you will never pay this fee.
These fees are subject to change upon 40 days notice to all existing customers.
An Example:
Suppose you are contributing $100 per month
(excluding sales tax) and you are in Service Plan 5,
which means you may only submit 5 batches of medical/dental receipts per year. Assume that your Accumulation Account is never overdrawn.
Therefore your on-going administration fees will be
10% of $100 plus $5.75 = $15.75 per month or 15.75%
of your $100 contribution.
This is quite a bit lower than the tax withholding and CPP contributions charged by the governments if the
same $100 per month is paid to you as taxable income.
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