HEALTH SPENDING ACCOUNTS

Sometimes referred to as a flexible benefit account, Health Spending Accounts (HSA) allow an employer to allocate a pre-set amount of money for each employee to use for medical expenses not covered by the traditional group benefits program.  Employees and their dependents have access to this account for reimbursement of any medical or dental expense that qualifies under the Canadian Income Tax Act, including deductibles, co-pays, drugs, eyeglasses, laser surgery, and smoking cessation programs.  Please feel free to contact our office for a full listing of qualified expenses. 

HSA’s are growing in popularity for a number of reasons.  First, HSA’s are a tax effective method for providing compensation to the employees.  The employer can use HSA expenditures as a tax deduction, and the reimbursement payments provided to the employees are not considered a taxable benefit.  Second, it allows the employer to offer the employees flexibility in deciding how they want to allocate their allotted funds.  Finally, the employer may choose to use a HSA to provide enhanced benefits to a select class of employees.