Health Spending Account tips and Information
A Health Spending Account (HSA) enables you, to take out money from your corporation, tax-free; to pay for your out-of-pocket medical expenses! Having an HSA is a cost-effective alternative to traditional health insurance. In simple terms, health and dental benefits offered through this plan are 100% tax-deductible to the employer and received 100% tax-free by the employee. There are no premiums, hidden fees, deductibles, copay, or complex policies.
Health Spending Accounts are in demand within Canada’s small business community. Viewed as a viable and cost-effective alternative to traditional health insurance, Health Spending Accounts make paying for medical expenses affordable and easy.
Although straightforward to use, the product does require proper explanation and understanding before it is adopted by any particular small business. Health Spending Accounts directly involve matters of taxation and ultimately business owners speak with their accountant for clarification.