HEALTH-CARE SPENDING ACCOUNTS (HSA & WSA)
Flexible Health-Care Accounts for a Wide Range of Health-Related Expenses
The Most Tax-Efficient Way to Manage Healthcare Expenses
If you’re a business owner with an incorporated company, a Healthcare Spending Account (HSA) is a must-have. It’s the most tax-efficient way to manage health, dental, and vision expenses through your corporation. For employers looking to provide tailored benefits, HSAs offer the flexibility to create custom plans for different employee classes.
Key Benefits of an HSA:
Pay-As-You-Go
Costs are incurred only when claims are made.
No Deposit Required
Start offering benefits without upfront costs
Choose Your Budget
Control your spending with pre-set contribution limits.
How Pay-As-You-Go Works
An HSA is a credit-based plan that allows you to allocate a predetermined amount for each employee. You only incur costs when an employee submits a claim. If an employee leaves the company, any remaining balance is forfeited. Best of all, there are no setup or deposit fees associated with this plan.
What Is a Healthcare Spending Account?
Healthcare Spending Accounts complement traditional group insurance benefits by offering flexibility and cost-effectiveness. With an HSA, you maintain full control over your contributions and avoid the unpredictability of annual renewals. At the start of each benefit year, employees receive a set amount of funds in their HSA, which they can use for various medical expenses such as:
- Prescription Drugs
- Vision Care
- Dental Work
- And More
Employees have the freedom to decide how to spend their HSA funds, with the maximum claim amount determined by the remaining balance in their account. You, as the employer, are only billed when claims are made.
Do You Qualify?
As a business owner, you’re eligible to take advantage of this tax-free benefit, which allows you to save on corporate taxes. For individual incorporated business owners, a standalone HSA plan enables you to process health expenses through your corporation, providing tax-free savings.
One of the biggest advantages of an HSA is that if the allocated funds aren’t used, there’s no charge. This feature makes HSAs an excellent addition to your standard group benefits package, covering expenses that traditional insurance plans often exclude. You have complete control over which employees are covered, how much they can spend, and you can terminate coverage at any time without incurring termination fees.
Tailored Solutions for Every Business Size
Small to Mid-Size Businesses (2-50 Employees)
You don’t have to sacrifice flexibility. An HSA offers a great introductory benefit plan, allowing employees to spend on what suits them best. Alternatively, a flexible plan can be designed to meet diverse needs and fit employees’ lifestyles.
Large Businesses (50+ Employees)
HSAs can be added as top-ups to existing insured plans, providing additional coverage options or customization to better meet employees’ unique needs.
