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.
24
Nov
2010
What is a health spending account
12
Oct
2011
How does a Health Spending Account work?
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 […]
12
Oct
2011
What is the advantage to opening a HSA?
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%)
12
Oct
2011
How do I open an account?
Click on the ENROLL button and fill out the form. A representative will contact you to finalize and verify the information.
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 […]
12
Oct
2011
I have expenses that were incurred before the start date. Can I submit those into my HSA?
Expenses incurred on or after the start date can be paid through the HSA. Claims incurred before the start date are not eligible.