A healthcare spending account (HCSA) is a benefits solution that can be used either as a complement to a core health and dental plan, or as a standalone option.
What Is It?
Essentially, an HCSA is a pool of money available to employees and their families, which an employer funds monthly throughout the year.
It’s great for employers because they can:
- 1. Control how much they would like to spend on the HCSA
- 2. Define “groups within their group” to customize how much funding each group of employees receives (can be based on seniority, position, etc.)
- 3. Count it as a 100% tax-deductible business expense
It’s great for employees because they can:
- 1. Spend their funds on any Canada Revenue Agency (CRA) approved expenses (encompassing much more than is covered by conventional benefits plans)
- 2. Receive tax-free benefits dollars
If you want to learn more about how HCSAs work and how they can help your business, watch our brief video:
Whether you are looking for creative ways to control your health and dental expenditures or a new strategy for rewarding your key employees, a healthcare spending account can be an ideal solution.
>> The Benefits Trust can help you integrate an HCSA into your current plan, or build a new customized benefits solution unique to your business. Contact us today!
Check out our FREE eBook for a comprehensive look at HCSAs: “The Smart Business Owner’s Guide to Healthcare Spending Accounts.”
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