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. If an employer wishes to offer benefits to their employees, they can create a custom plan for their employees arranged by class.
The employer has complete control over which employees are covered under the plan and what amount they are given to spend. The employees are categorized at the start of the benefit term and the limits of coverage are set based on the criteria designed by you and your broker. The employer has complete control and may terminate anyone at any time. All Health Spending Account expenses are taxable to residents of Quebec.
If an employer does not have a traditional benefits plan, an HSA can be used to provide a complete range of coverage including medical, dental, and vision benefits to employees who otherwise could not get employer sponsored benefits. If an employer has a traditional insured group benefits plan, an HSA can be used to “carve out” infrequently used coverage such as orthodontics or vision care and make these types of benefits available in a Health Spending Account.
The list of covered expenses includes many items that are not typically allowed under a normal group benefits plan. Our pre-populated list is taken directly from the CRA (see “Summarized List of Items” page for more information).