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Simple Question - Sole Proprietorship Business w/Private Health Services Plan (PHSP)

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  • Mar 8th, 2012 8:03 pm
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Aug 3, 2010
362 posts
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Simple Question - Sole Proprietorship Business w/Private Health Services Plan (PHSP)

I have a sole proprietorship business and registered with CRA. However in Ontario my business has a registered business name (trade/operating name). Within the CRA "My Business" website it shows my sole proprietorship business name is my actual personal name not my "Business Name" (operating name). Howver i decided to add my actual business name within the site under "Operating Name".

Ok, so when dealing with a PHSP they require me to send cheques to them from my business bank account.

So my question, do i send cheques from my personal bank account since it seems CRA regards sole propr. business in my personal name? Or do i send cheques from my actual business bank account which i have and uses my actual business/operating name that i registered here in Ontario?

I was thinking since CRA shows "Business Name: {my personal name here}" i should just send cheques to my PHSP from my personal bank account not my actual business bank account which uses my actual business name.

Which is the correct corse of action? All my PHSP says after calling them is to send cheques using my business account but doesnt make it clear which account that is since CRA shows my business is in my personal name but my actual business bank account is separate from my personal.
7 replies
Deal Addict
Jul 8, 2009
2028 posts
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Edmonton
I've found that each PHSP provider is different in how they handle these matters. If you set this up with an advisor, you should ask him/her that question. He may need to call the provider anyway so you eliminate the middleman and call your PHSP client-service number. I've found that some of the PHSP providers have poor client service response (low fees and poor service) and some are very good. Olympia Benefits is excellent if you're with them. I can provide the numbers for some of the major providers if you need it, or go to their website. I don't know if you'll have to repaper your account.
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Aug 3, 2010
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Wing Nut wrote: I've found that each PHSP provider is different in how they handle these matters. If you set this up with an advisor, you should ask him/her that question. He may need to call the provider anyway so you eliminate the middleman and call your PHSP client-service number. I've found that some of the PHSP providers have poor client service response (low fees and poor service) and some are very good. Olympia Benefits is excellent if you're with them. I can provide the numbers for some of the major providers if you need it, or go to their website. I don't know if you'll have to repaper your account.

interesting info. Yea i am looking to save so Olympia might be a little more than i want. I found Brock Health is the cheapest and seems to give all i want but they are just saying use biz account for cheques which is fine by me but was wondering which is the business since cra recognizes sole propr. business names as actual people names (your personal name) and not ur operating name. so i was just confused which bank account i am to use. i might need to call cra to get it clarified since even RFD dont know too.
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Nov 19, 2004
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Cambridge, ON
I would use your business account. You will be claiming it as a business expense so pay the PHSP plan with your business account. Remember it is about the paper trail and records, if you ever get audited. Paying from your business account makes it very clear that the PHSP was paid for by the business.
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Aug 3, 2010
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don242 wrote: I would use your business account. You will be claiming it as a business expense so pay the PHSP plan with your business account. Remember it is about the paper trail and records, if you ever get audited. Paying from your business account makes it very clear that the PHSP was paid for by the business.

Understandable. But was a bit puzzled because Sole Propertors are registered with CRA using their "Personal Names" not their Business operating names. So are you saying just use my bank account that i use that is realted to my business "operating name" and not the actual business name that cra has on file which they show as my real personal name (first and last name)?
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Nov 19, 2004
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brand404 wrote: Understandable. But was a bit puzzled because Sole Propertors are registered with CRA using their "Personal Names" not their Business operating names. So are you saying just use my bank account that i use that is realted to my business "operating name" and not the actual business name that cra has on file that it says is my "Business Name"?

I would use the business account since you have one. The most important thing is you keep proper records, and if you have a business account already for business related transactions, it makes it easier and more clear if anyone ever looks at them.

I use Brock Health as well and they were very helpful when I was setting it up. Any emails were always responded to in less than a day.
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Aug 3, 2010
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don242 wrote: I would use the business account since you have one. The most important thing is you keep proper records, and if you have a business account already for business related transactions, it makes it easier and more clear if anyone ever looks at them.

I use Brock Health as well and they were very helpful when I was setting it up. Any emails were always responded to in less than a day.

Thanks Don. I was just hesitant to do so because i would have to actually order cheques now for my business bank account. I notice ASAPCheques site is down for a while now so i dont know how much damage i can expect for ordering the least amount of cheques. Have any idea how much it will cost me or can i just order standard personal cheques but have the name on it assigned to my business operating name? I would assume business cheques look identical so i figure since asapcheques has dirt cheap personal cheques they will just allow me to stamp on my business name on them. Any ideas?

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