A health spending account lets your business reimburse employees for eligible medical and dental expenses in a tax-efficient way. In Canada, it’s set up as a private health services plan. You choose a yearly amount for each employee. Then, employees submit claims for eligible expenses, such as dental work, glasses, prescriptions, or physiotherapy, and get reimbursed. As a result, it’s a flexible, affordable benefit for businesses of any size, including owner-only corporations.
Eligible expenses generally follow the medical expense rules in the Income Tax Act. To check how specific benefits are taxed, see the CRA’s guide to taxable benefits.
Our experienced consultants can help you with:
As with any tax matter, your accountant should confirm how the rules apply to your business.
A health spending account helps your employees take charge of their health costs while keeping your budget predictable. Contact Nova Star Insurance Consultants today to learn more.
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