Sole Proprietorship

In some circumstances, per section 20.01 of the act, sole proprietors can be eligible for a PHSP deduction providing the following specific criteria are met.

50% of income must come from self employment;
Income from other employers must not exceed $10,000 per year.
Must have a business bank (chequing) account;
If you employ any full time arms length employees they must be offered benefits as well. In these circumstances your annual benefits are limited to those made available to your employees.
For proprietorships without employee’s your plan is limited to an annual maximum of $1500 per spouse and $750 for each dependent child. This is a cumulative total for the family.