It’s difficult to find good people and when you do, you want to do your best to stay competitive so that they will stay working with you. One strategy for a small business to consider is a Health Spending Account (HSA).
HSAs are a great way for a business to provide tax-free health and dental benefits to their employees and their immediate family members. The HSA would be a tax deductible business expense, so this is a big win-win.
Unlike traditional health plans, HSAs have no deductible and no premium payments. The employer deposits a preset amount into the employee’s HSA on an annual basis. There are no restrictions to eligible expenses (eg. 80% coverage or max number of visits). The only restriction is the total dollar amount available in the employee’s HSA.
A business doesn’t need to have staff to implement an HSA. Incorporated businesses where there is only one owner can take advantage of HSAs.
However, not all HSAs are created equal. Eligible HSA benefits fall under the CRA rules under the Income Tax Act for medical expenses. Therefore, it’s important that you seek out an experienced licensed insurance advisor. IFC has licensed advisors who can help design an HSA to properly suit your needs.