Macbook Air (Mid-2013) and iPhone 5s IOS version 8.1 won't connect via bluetooth, anyone know how to fix this problem?

I have a Macbook Air running OS-X Yosemite and an iPhone 5s running IOS version 8.1. Every time I try to connect the devices via bluetooth is won't connect saying my Macbook Air isn't supported when in actuality it is. Anyone know how to fix this issue? I have restarted both my Mac/Iphone and have turned bluetooth on/off and nothing seems to help. Bluetooth pairing didn't work before I updated to IOS 8.1 so I doubt that is the issue here.

Pairing an iPhone to a computer (Mac or Windows) is only supported for personal hotspot (sharing the iPhone's cellular internet connection) and then only if your cellular plan supports it. More information: Bluetooth: Why can't I pair my iPhone or iPad with my computer?

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