Employee Healthcare Spending Accounts

Tax Free and CRA Approved

 

First introduced by Canada Revenue Agency in 1986, Health Spending Accounts (HSA) were limited to executives of large corporations due to the complexity and cost of setup.

Now small and medium sized businesses and their employees can take advantage of signficant savings with a cost effective HSA solution that is seamless and simple to administer.

A unique solution for your employees' unique healthcare needs.

A Health Spending Account (HSA) is a uniquely designed "bank account" similar to an RRSP savings account except an HSA is established exclusively for the purpose of healthcare spending.

Established in compliance with the Canada Revenue Agency, contributions are recognized as a 100% business deduction in the year in which they were contributed - even if the money is not spent that year. The HSA money can be used to pay for your employees' healthcare expenses, as they choose.

Unspent contributions are not lost at year end -they carry forward for spending the following years. In some cases, an employee can build up thousands of unspend HSA dollars for their future healthcare needs.

 

There are two different Health Spending Accounts available

1. For Incorporated companies - Health & Welfare Trusts (HWT)
2.  For self-employed individuals - Private Health Services Plan ( PHSP)
 

Employer Benefits

• Contribution are a 100% tax deductible expense for the company
• Faciliates budget certainty by establishing the fixed contribution amount per employee
• Excellent solution for employee retention and increasing appreciation of their benefits plan

Creative Compensation Strategies can Increase Retention and Productivity

• Salary amendments for individual employees health needs
• Executive compensation health services fund or retirement benefits
• Core or supplementary tax free benefits program

 

Employee Benefits

• Think of your employees having their own flexible personal choice CRA approved self-directed health benefits plan.
• Employees will have a wider range of health services and medical expenses covered than traditional insurance plans offer such as laser eye surgery.
• They will have their own health-care expenses savings "bank account" similar to an RRSP bank account.
• Your employees will appreciate taking any current out-of-pocket, after tax expenses and converting them into pre-tax expenses saving around 20% to 30%.

 

Do you have employees with personal or family healthcare needs struggling financially that you would like to help? 

Since 2001 ChannelPoint has been providing innovative Canadian, U.S. and Cross Border health benefits consulting and solutions for small, mid-size and large employers.