Access Smarter Health Benefit for Business Owners
Stop overpaying for rigid health plans. A Health Spending Account (HSA) gives you flexibility, tax-efficiency and control -> for you, your team and your bottom line.
A Health Spending Account (HSA) is a non-taxable supplement and/or alternative to a traditional group or individual health and dental plan.
A 20-minute call to explore how an HSA can fit your business and your life.
Why Your Benefit Plan Probably Isn’t Working
You run a busy business. You want to take care of your team. But you:
• Pay high premiums for benefits your people rarely use.
• Get locked into plan categories that don’t match real needs.
• Face limited flexibility and a one-size-fits-all mindset.
An HSA changes the game. It gives you a health-spending wallet that works the way you and your business do.
What is an HSA?
Flexible health spending with tax advantages.
A Health Spending Account (HSA) is a tax-efficient tool for Canadian business owners and incorporated professionals. The business contributes, the eligible medical or dental expenses get reimbursed tax-free, and you get the flexibility and freedom.
Key points:
• The business pays the expenses (or contributes to the account) and deducts them.
• The reimbursement to the employee or business owner (when they work in the business) is generally tax-free.
• Many expenses qualify — dental, vision, prescriptions, paramedical, wellness, in some cases
Who should have an HSA? Most incorporated business owners with active business income are eligible to have an HSA. It is the most tax-effective way to pay for health, dental, and vision expenses. When an employer offers group benefits to their employees, they can structure a plan that offers different benefit options to different classes of employees.
Who can qualify under an HSA? Employers have complete control over which employees are covered under the plan and what amount they can spend. Note: All employees in the same class must be offered the same benefits per CRA guidelines.
Health Spending Accounts - Our cost summary:
The only fee paid is the admin fee when a claim is made. If you never use it it, there is no cost to you.
myHSA as an alternative vs. supplementary plan
If an employer does not have a traditional benefits plan, an HSA can be used to provide a complete range of coverage, including medical, dental, and vision benefits, to employees who otherwise could not get employer-sponsored benefits. If an employer has a traditional insured group benefits plan, an HSA can be used to “carve out” infrequently used coverage such as orthodontics or vision care and make these types of benefits available in a Health Spending Account.
Covered expenses. The list of covered expenses includes many items not typically allowed under a regular group benefits plan. Our pre-populated list is taken directly from the CRA (see “Summarized List of Items” page for more information).
Eligibility. An HSA is an employee benefit and not a shareholder’s benefit. When setting up the plan, please make sure the following conditions have been met:
1. It Must be an active business. It cannot only generate passive income.
2. The benefit is available to all employees in a given class, including those who are neither a shareholder nor related to a shareholder (regardless of whether they have chosen to participate in the plan); or
3. If the benefit is not available to all employees, but there is a logical reason to exclude some employees; or
4. It is reasonable to conclude that the benefit has been provided as part of a reasonable remuneration package for the individual as an employee; or
5. The benefit is comparable to that offered to non-shareholder employees of businesses of a similar size who perform similar responsibilities.
No pre-funding is required. Pay-as-you-go funding, where notifications are sent to the company administrator whenever an employee claim is submitted (the claim details are always private).
If there’s anything you’re unsure about and would like to discuss further, please don’t hesitate to contact us. We're a click or a call away.
A video detailing our HSA user experience:
