GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
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38% - Moderately

Health and Welfare Trust


Synonyms:health and welfare plan
Acronyms &
abbreviations:
HWT
Filed Under: financial-banking, insurance, taxation
Tags: business, employment, health, labour, taxes
 

Definition of Health and Welfare Trust (HWT)

Health and Welfare Trust (HWT)
1. A tax-free method for corporations to provide health benefits to their employees. Introduced in 1986, health and welfare trusts (HWT) can be used in conjunction with Private Health Services Plans (PHSPs) in order to provide a tax deduction for the employer and a non-taxable benefit for the employee. Also known as a "health and welfare plan (HWP)"

Related Terms and Acronyms:

  • fringe benefit   Employee compensation other than your wages, tips and salaries, such as health insurance, life insurance and pension plans. Usually referred to as a Bonus.
  • group health insurance plan   Health insurance that covers a large group of people, often as part as a employee benefit package.
  • health insurance (HI)   Insurance that covers the costs of medical expenses for insured persons.
  • medical specialist   A doctor with training in a specific medical field.
  • private health services plan (PHSP)   A method for businesses to provide health benefits for their employees that is both tax deductible for the business and non taxable for the employee.
      ➥  Provides tax-deductible health and dental benefits in Canada.
  • private healthcare   Health services no provided by the government, often paid out of pocket.
  • stop loss insurance   A low premium, high deductible insurance policy with an upper limit on coverage.
  • two-tier healthcare   A situation where public healthcare is available to all people, but private healthcare can be purchased by those who want it.
  • universal healthcare   A system for providing healthcare free to patients at point of use.

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