Health Spending Account (HSA).
A Health Spending Account allows your employees to use your company’s money to pay for their personal medical expenses. This is a 100% tax free benefit for you and your employees as well as a 100% tax deductible expense for your company. Employees appreciate having an HSA for the flexibility of expenses they can claim.
Health Spending Accounts can be used on a stand-alone basis or, in conjunction with a traditional Employee Benefits Plan. When used in conjunction with Employee Benefits, an HSA can provide additional coverage not covered by insurance and is a great supplement to provide a set amount for plan members to use as needed and on the things important to them.
Here are just a few of the 100’s of CRA approved benefits a business can write off using an HSA:
- Prescription drugs
- Dental
- Vision
- Massage Therapy
- Orthodontics
- Dietician Visits
- Crutches and Canes
- Fertility Treatments
- Chiropractic
- Naturopathic Visits
- Diabetic Supplies
- Physio Therapy
When the plan is set up, the plan sponsor (employer) can limit the amounts employees can spend. Employee classes with different limits can also be set up.
The HSA may also cover medical expenses that aren’t covered under a provincial plan or your standard insurance plan (e.g., sight and hearing guide dog expenses, special equipment for persons with disabilities, some cosmetic surgeries).