Health Spending Accounts (HSA)
A Health Spending Account (HSA) is a type of plan in which every year a specified amount is placed in the HSA allowing an employee flexibility and discretion as to how these benefit dollars (credits) are spent. The HSA plan may be supplemented to an insured plan or implemented as a standalone plan. As an employer, all of your expenses, including claims, administrations fees and taxes, are 100% tax-deductible. Other benefits you include using the plan as an effective tool for managing costs as well as substantial reductions in actuarial, administration adjudication, and marketing expense. Employees also enjoy the benefits of being reimbursed for all eligible claims under the HSA that suit their needs and these are non-taxable benefits to the employee.
Highlights and benefits
A special savings account that covers expenses not covered by a standard group plan providing employees a fixed amount of dollars to cover any dental and health claims, deductibles and coinsurance levels. Dollars known as credits can be carried over 12 months.
- Properly set up HSA can be an effective tool for providing employees increased flexibility
- With a fixed dollar amount often referred to as credit employers employee benefit program cost is fixed commonly used by owners and senior management as a using pre tax dollars
- Commonly used by owners and senior management as a using pre tax dollars. HSA accounts are very tax effective
- Can be effective as a top up plan
Service Area: For over 20 years PGI Financial has been helping clients in the Greater Toronto Area including: Milton, Guelph, Hamilton, Mississauga, Vaughan, Markham and downtown Toronto.