Also known as Health Care Spending Account (HCSA)
A Health Spending Account (HSA) works for you if:
- You are an incorporated business owner looking to pay for your personal out-of-pocket health and dental expenses in a tax advantageous way
- You are a small incorporated business owner waiting to provide your employees with health and dental coverage in an affordable way. The HSA has no premiums, flexible limits, and controls employee benefit costs.
- You are a large incorporated business owner who wants to provide supplemental coverage to your employees in addition to their group benefits plan in order to attract and retain top talent and promote employee wellness.
The main advantages of an HSA
Are certain coverages costing a lot on your current benefits plan? (Vision is a common and expensive benefit option). Take it out of the benefits plan and offer to your employees through the HSA instead. Get cost control without sacrificing coverage!
What can be covered under an HSA?
Under an HSA there is a wide range of eligible expenses that can be covered such as:
How exactly is the plan affordable?
The HSA gives you cost assurance. Never go above your budgeted amount. Not only that but the reimbursements are provided as non-taxable benefits to the employee, and the payments are 100% tax deductible business expenses.
What about Taxable Wellness Accounts?
Use your existing HSA budget and create a “menu” of benefits to offer your employees. Pick from a list that includes popular options like: gym and recreational memberships, family leisure costs, transit passes, educational learning, spa relaxation and more.
This taxable wellness account is popular for providing tailored choice to employees. Daycare coverage is important to one employee, while getting fitness classes reimbursed is significant to another. Show your employees that you embrace the different health and wellness needs in your workplace. Allow them to choose how to allocate their yearly spending dollars between a variety of coverage choices.