FAQ's about HSA's
A Refresher on Health Spending Accounts
1) What is a Health Spending Account?
• A method approved by CRA for a corporation to deduct employee medical expenses against its taxable income and the benefit to the employee is non taxable
2) Who should use an HSA?
• Any corporation that wants to pay a non taxable fixed benefit towards medical costs of its employees before implementing a full benefit package.
• Any corporation that has found it has to discontinue a traditional benefit package due to participation or costs, yet wants to contribute a fixed amount towards a flexible benefit package for all or a group of employees.
• Any corporation that has a traditional benefit package but wants to add a "flexible extra" in its benefit package which allows employees to select where their health dollars get spent.
3) How do we set up an HSA plan?
• Give us a call and we'll take care of the details. There is a minimum one time set up fee. The program we generally use is here. Read all about it if you want
4) Is there a monthly premium required for every employee?
• The short answer is no. A monthly deposit arrangement can be made, but many are set up on a claims only basis.
5) How can we find out if it is best for our company to use an HSA?
• Give John a call right now at 519-622-3347. In a brief five minute phone call, you can quickly find out if it is right for your company
Too busy to call?? Take a minute and send John a short note here. Ask your questions or let him know the best time to call you.
With the current technologies available, a number of companies now put special packages of benefits together. Cost controls and "flex-benefits" are being better utilized thru the implementation of Health Spending Accounts and Health and Welfare Trusts. This is definitely a growth area because of its simplicity to you.
Do you need some help with Disability Income Planning or Business Overhead Expense Planning. Give John a call and get the straight answers.