Health Spending Account (HSA)
An Efficient Alternative for Business Owners ( Incorporated )
Flexible benefits, Increased Tax savings

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What Is HSA?
Using guidelines outlined by CRA (Canada Revenue Agency), HSA is a plan that facilitates incorporated businesses and unincorporated businesses with arms length employees in paying their health and dental expenses in a tax-effective and cost-efficient manner.

HSA works very differently than traditional group or individual health and dental insurance programs in that there are NO ongoing premium payments required.  

Eligibility Requirement:

• If you operate a business, is self employed or an independent contractor with arms-length employees**, you may be eligible. 
• Your business must be main source of revenue.

AKA

• Corporation- 1 life minimum 
• Unincorporated - 1 life + arms-length employee**

  **Arms Length employee is one that is unrelated to the sole proprietor

Benefits to Employer:

• Able to deduct eligible medical expenses*
• Higher Deduction limits than most plans
• Total control over plan costs
• Can supplement current plan
• Employee retention
• Large list of Eligible expenses ( IT-519R2)

Benefits to Employee:

• YOU decide how to spend the benefit amount
• No underwriting
• More eligible expenses than traditional plan
• Benefits are non-taxable*
• Up to 100% reimbursement of receipt