Reading Materials/Articles

Health Spending Accounts (HSAs) and Private Health Services Plans (PHSPs) allow employees to be reimbursed for eligible medical, dental, and wellness expenses. Employers can structure plans to maximize tax efficiency while providing flexibility for employees. This guide explains carry-forward rules and claim submission. 1. Annual Limits: Use-It-or-Lose-It (CRA-Compliant) Each employee has a fixed annual benefit […]

✅ What Can Be Claimed Eligible expenses under a Health Spending Account (HSA) must meet CRA guidelines for medical necessity. Common examples include dental treatments, prescription medications, vision care, physiotherapy, and paramedical services. If the expense is typically deductible under the Income Tax Act as a medical expense, it is usually eligible under an HSA.

🧘 What is a WSA? A Wellness Spending Account (WSA) is a taxable benefit funded by the employer that covers a broad range of lifestyle and wellness expenses not eligible under a traditional HSA. Common examples include gym memberships, fitness equipment, nutritional counselling, and mental health apps. ✅ Why Use a WSA A WSA allows

When it comes to managing out-of-pocket healthcare costs in Canada, two common options stand out: Health Spending Accounts (HSAs) and the Medical Expense Tax Credit (METC). While both offer tax advantages, they work in very different ways. Understanding how they compare can help you decide which one is right for your situation—or if you can

Advisors and business owners often ask why employees can’t make their own contributions to a Health Spending Account (HSA), either through payroll deductions or direct top-ups. While it may seem like a flexible feature, the reality is that employee-paid contributions can trigger tax consequences—and risk non-compliance with CRA regulations. 💸 Payroll Deductions Are Taxable If