Do you own an incorporated business? Do you personally receive income from your business? Do you and your family have annual Medical Expenses?
If you answered YES to all of those questions… we can SAVE you money.
What is a Health Spending Account (HSA)?
An HSA is a Canada Revenue Agency approved method that allows personal qualifying medical expenses (e.g. health, dental, vision, massage, chiro) to be paid for in a tax-efficient manner. Your corporation can write off 100% of ALL qualifying medical expenses. Qualifying medical expenses incurred by an employee and their family can be reimbursed TAX FREE!
Who should have a Health Spending Account?
Every business owner who has an incorporated company should have one. It is the most tax effective way to run health, dental and vision expenses through the corporation. HSA’s offer substantial reductions in actuarial, administration and adjudication expenses thereby reducing employer cost.
An HSA can be used as a standalone health plan or can be used in conjunction with a traditional insured plan. Traditional insured health plans typically offer restricted health benefits and dollar maximums. It is for that reason alone it is beneficial to own an HSA to save you even more money on your personal medical expenses.
The HSA can be set-up for just the business owner employees and their family or it can be offered to other classes of employees.
How does the HSA plan work?
We use a Pay-As-You-Go plan. There are NO mandatory monthly or annual premiums. You only pay if and when a claim is submitted. There are NO deductibles and No restrictions on qualified expenses. When an expense is submitted the corporation simply pays the claim amount plus an administration fee. The HSA fee covers the administrative and compliance service that is required for the benefits to be paid non-taxable. All claims are processed on-line! There are no paper administration claims!
Who can qualify under the HSA Plan?
The employer has complete control over which employees are covered under the plan. Separate classes of employees can have separate amounts available for the employees to spend.
How much does it cost?
NO set-up fees, NO monthly fees and NO fee for adding or deleting employees.
The only fee is an Administration Fee of 10% plus applicable provincial taxes on each claim. Traditional insured plans typically have a built-in cost of 30-35% – hence the savings.