Employee Benefits Alberta

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.