Health and Welfare Trust (HWT)

A Health and Welfare Trust is an arrangement, established under the Income Tax Act, between an employer and its employees where the employer agrees to provide one to more benefits for employees and/or their families. The corporation makes tax deductible contributions to the trust to reimburse the trust for payment of the premiums and expenses incurred in providing the benefits.


Uses Pre-Tax Dollars

A HWT uses pre-tax dollars to pay for expenses that would normally be paid with after-tax dollars yet remains a non-taxable benefit to the members.

Acceptable Benefits

Accidental Death and Dismemberment, Wage Loss Replacement plan, Salary Top Up / Continuation, Long Term Care, and Provincial Health Service premiums can all be expensed through trust.

Increase Cash Flow

Higher premiums result in larger savings. Typical 50% savings on costs incurred to provide acceptable benefits.

Ability to Roll-in Existing Components

The HWT can be set up to hold existing insurance policies, and health services such as Private Health Services Plan (PHSP).


Eligible benefits are allocated b classes of employees.

Benefits Protection

Under current legislation Critical Illness benefits remain tax free to the beneficiary even though premiums are being paid by the trust.

For more information,
please contact us at

(647) 833-2782