No. This is a common misconception. Medical and Health care expenses are never tax-deductible on personal taxes, but instead are eligible for a tax credit only. If your medical claims are less than 3% of your taxable income in a year, you get no credit whatsoever. Now you can choose […]
A Health Spending Account is a special type of ‘bank’ account (it’s actually a ‘Trust Account’), established under Canada Revenue Agency rules, that allows a Canadian tax payer to set aside a portion of their gross income before tax, pay no tax on this money, and then deposit the full amount into an account to be used exclusively for the family’s health care spending.
The company makes a contribution on behalf of an employee(s) into a Health Spending Account to be used on medical expenses incurred. It is a non-taxable benefit for the employee and a 100% business deduction for the company. Contributions are determined at the start of the program for each employee […]
Health care expenses for your family, and your dependents related by either blood or marriage, can be paid with your pre-tax income rather than only being able to use the money you have left after paying federal and provincial income taxes (which may range as high as 48%)
Click on the ENROLL button and fill out the form. A representative will contact you to finalize and verify the information.
The plan Administrator requires all original receipts along with a completed claim form. When you are requesting reimbursement for health expenses previously submitted to an insurance plan, and are requesting reimbursement for the portion they did not cover, submit the original copy of their member statement to you (the statement […]
For eligible HSA expenses, a service must be performed by a licensed medical practitioner, and items must be prescribed by a licensed medical practitioner & dispensed by a licensed medical practitioner or a pharmacist.
1 – Service must be performed by a licensed medical practitioner, 2 – Items must be prescribed by a licensed medical practitioner & dispensed by a licensed medical practitioner or a pharmacist. For a general list of practitioners, please see the CRA publication: “Authorized medical practitioners by province or territories […]
No. As soon as your account application is accepted, you will receive a User Guide and Claims Package, you can then submit claims immediately.
All unused funds roll-over to the following year. • With an Health Welfare Trust (HWT) for a Company that is Incorporated – Account funds will role over indefinitely. • As with a Private Health Services Plan (PHSP) used by sole proprietors, self-employed, contractors, consultants, tradesmen, professional corporation etc. – Two year forfeiture […]
Contribution levels can be based upon employee classes. If the employer can clearly define classes for employees, different amounts can be offered. However, if you have two employees doing the exact same job (i.e. if you have two full-time receptionists) they must be given the same amount. For a Private […]
As long as you can prove that you are in a class of your own (i.e. executive), you do not need to offer the benefit to all employees.
Expenses incurred on or after the start date can be paid through the HSA. Claims incurred before the start date are not eligible.
There are two possible options: 1 – Partial payment of the claim to the employee of what is in the account and reimburse the remaining amount when more funds become available. 2 – Hold onto the claims until the full amount is in the HSA, then reimburse in full. If […]
Any premiums you pay for a health and drug plan are an eligible medical expense and can be paid for through your HSA. You would need to submit a statement showing the premiums paid to be reimbursed.
As long as the expenses are legitimate claims under a Health and Spending Account (please see: What is an eligible expense?) expenses not covered by your Health & Drug plan can be reimbursed by your HSA. You would need to submit the explanation of benefits page to be reimbursed.
Yes, as long as the product or supplement in question is prescribed by and dispensed by a licensed medical practitioner in your jurisdiction (see Authorized medical practitioners by province or territories for the purposes of claiming medical expenses ), these costs can be fully covered by your HSA.
Yes. An Explanation of Benefits statement from the insurance carrier is needed. This can be submitted like any other medical receipt with a completed claim form.
Contributions made to the trust can never revert back to the employer. It can also never revert to the employee in cash form unless they submit an eligible medical expense. A terminated employee will still have access to the funds remaining in the HSA by submitting medical expenses to the […]
Contribution levels can be based upon employee classes. If the employer can clearly define classes for employees, different amounts can be offered.
These can vary, but the plan administrator we recommend, unlike many, charges no set-up fee. There is a single one-time charge, as funds are deposited to your HSA, of 10% (plus applicable taxes which do vary by province). There are no on-going charges.
Contributions remaining in the trust can only be released for eligible medical expenses. If there are dependents listed on the plan they still have access to the remaining funds. However, if there are no listed dependents, the funds stay in the HSA.
An eligible dependent is defined as a spouse or any member of the household with whom you are connected by blood relationship, marriage or adoption, and who is financially dependent upon you at some point in the year. In addition, this dependent must be a Canadian resident, having resided in […]
A basic drug and extended health coverage plan is a great compliment to your HSA. It can protect your HSA in case of catastrophic illness. Obviously, the best possible situation for a Canadian tax-payer is is to have comprehensive Health Insurance, with no deductible, and fully paid for by someone […]