Health Spending Accounts
A Health Spending Account is a Canada Revenue Agency approved method to provide medical, dental, and vision benefits to your employees in a tax-efficient manner. Your business can write off 100% of the costs related to your Health Spending Account and all expenses are reimbursed to the employee tax-free.
Types of Covered Expenses:
- The employee may claim any medical expense allowed under the Income Tax Act
- As an employer, you have complete control over which employees are covered and the amount they have to spend
- The employees are sorted into class at the beginning of the benefit term, coverage limits are set on criteria designed by you and your broker
- Employees can be added or removed from the HSA at any time
What is the cost?
- No set up fees
- No monthly fees
- No fees for additions/deletions of employees
- The only fee applied is the administration fee set by the broker
How often do I have to contribute?
- Pay as you go
- Withdraws are only made from the employer's bank account when a claim is made