group health insurance PK1
  • About Us
    • Our Company
    • Partners
    • Testimonials
  • Locations
    • Calgary
    • Saskatoon
    • British Columbia
  • Blogs
  • Contact
  • [email protected]
  • 1-877-217-7829
Menu
  • About Us
    • Our Company
    • Partners
    • Testimonials
  • Locations
    • Calgary
    • Saskatoon
    • British Columbia
  • Blogs
  • Contact
  • [email protected]
  • 1-877-217-7829
  • Group Health Benefits
    • Group Health Benefits
    • Dental
    • HCSA & Wellness
    • Additional Benefits
  • Group Retirement Plans
  • Individual Insurance
  • Consulting Services
Menu
  • Group Health Benefits
    • Group Health Benefits
    • Dental
    • HCSA & Wellness
    • Additional Benefits
  • Group Retirement Plans
  • Individual Insurance
  • Consulting Services
1-877-217-7829
GET A QUOTE

Available 24/7

Menu
  • Get a Quote
  • Our Company
  • Group Health Benefits
    • Group Health Benefits
    • Dental
    • HCSA & Wellness
    • Additional Benefits
  • Group Retirement Plans
  • Individual Insurance
  • Locations
    • Calgary
    • Saskatoon
    • British Columbia
  • Testimonials
  • Consulting Services
  • Blogs
  • Contact

Tag: health spending account

HSA vs WSA: What Is Better For Employers & Employees?

Many companies in Calgary offer either Health Spending Accounts (HSA) or Wellness Spending Accounts (WSA) as part of their group health insurance plans for their employees. But where do they differ for employees and employers? In this guide, we’re going to explain what you need to know about these spending accounts and how they might benefit your business and your employees.


What is a Wellness Spending Account (WSA)? 

A Wellness Spending Account (WSA) is similar to a Health Spending Account in which it covers expenses – but only concerning wellness and health services, as opposed to medical services. 


It encourages employees to undertake healthy activities; with health plans more focused on fitness, nutrition, over-the-counter supplements, personal development, courses and textbooks, mental health and therapy. 


Wellness Spending Account

However, unlike an HSA, a WSA is a taxable benefit, which means that the amount used by the employee’s allowance contributes to their yearly taxable income. It is not tax-free and, therefore, eligible services and items are determined by the insurance provider.


What is a Health Spending Account (HSA)?

HSAs are more common than WSAs because group health insurance plans cover medical services that impact the health of employees. It’s why the majority of services under an HSA include dental insurance, prescription drugs, physiotherapy, and prescription glasses. 


The main difference with an HSA is that it’s a tax-free allowance. All expenses are 100% tax-deductible for businesses, and employees do not pay tax on their purchases. Therefore, the eligibility works differently: the Canadian Revenue Agency determines the eligible medical expenses, not the insurance provider, due to its tax implications.


How do they Work for Employees? 

Both HSAs and WSAs work on a similar level: 

  • Each employee is designated a limit as to how much they can spend in their health spending account. Limits are determined through classifications (such as job title, years of experience and anything applicable in the workplace) by the employer. 
  • Employees will pay for the expense personally and then claim with the WSA/HSA provider, and if eligible, they will be reimbursed. 
  • Employees do not have to spend all of their WSA/HSA allowances but cannot claim over their limit.

The significant difference between the two is that the allowance used in the WSA is added to an employee’s taxable salary, as opposed to an HSA, which is tax-free dollars. When the reimbursement of the WSA takes place, the expense will be added to the employee’s total taxable income.


There are many advantages to using either health spending account. For employers: 

  • They can control costs 
  • The chance to attract, retain, or develop employees 
  • Offer highly specialized, industry-specific perks
  • Avoid high admin fees and premium increases

For employees, they can expect: 

  • The flexibility and choice for employees to use their health spending 
  • Incentivize their employees to take a proactive approach to their wellbeing, meaning reduced days of work, higher productivity and a happier workforce 
  • The opportunity to save money in health and wellness expenses 

How to Choose what Works for Your Business? 

Choosing one over the other for your employees depends on your business objectives, the workplace culture you’re trying to promote and your budget. Start by asking yourself: 

  • What is the aim of my business? 
  • Is there an example I want to set for my employees 
  • What is my budget?
  • What type of work environment am I trying to create? 

Take your time and think about making the right decision on which health spending account works for you. 


Perlinger Group Benefits has been offering exceptional group benefit plans since 1992. Our goal is to provide the best group health insurance plans to meet your business’ needs, regardless of the size of your business. We make it affordable and easy to get access to comprehensive benefits plans. Contact us today: Direct Line 403-217-5560 | Toll-Free 1-877-217-7829 | Email [email protected].

Posted in Small BusinessTagged group health insurance plans, health spending account, Wellness Spending AccountLeave a Comment on HSA vs WSA: What Is Better For Employers & Employees?
How Does A Health Spending Account Save Money For Small Businesses In Canada?

A health spending account can be super beneficial if you own and operate a small business in Canada. It can make a substantial difference to your finances, as well as your employees’ group insurance plans and well being. Here is how it can help:


What is a Health Spending Account?

Firstly, a Health Spending Account (HSA) is the tax-efficient and cost-effective way for businesses to pay for their employees’ health group insurance. In its most basic level, health and dental expenses that are offered through an HSA can be fully tax-deductible to the business and are 100% tax-free for employees. 


An HSA can be applied to your existing group insurance plan to cover for things that weren’t previously covered under your policy. It can also be used as a reimbursement plan to cover your expenses. There are no fees or hidden premiums for HSAs. 

However, you can only be suitable for HSA if you:

  • Are the owner of a business
  • Pay income tax or receive T4 income 
  • Pay medical bills
health spending in Canada

How does a Health Spending Account work?

Utilizing a Health Spending Account in Canada varies on the structure and size of your company. But in most cases, the process goes as follows for small businesses: 

  • An HSA starts when an employee makes a claim.
  • From there, the HSA provider will process the receipt of the employee’s claim to fund the reimbursement. 
  • Once the claim has gone through, your small business will receive an invoice for the service, which is considered a business expense and therefore is considered tax-deductible while the employee gets the reimbursement tax free.

There are also plenty of other benefits that come with getting an HSA for your small business, including:

  • As the employer, you get to fund the group insurance plan with a monthly amount that you choose. 
  • The funds not used by the employee are returned to the employer.
  • As you have no hidden fees or premiums, that money is never lost. 
  • The employee can claim all of their health bills and pick what medical treatments are important to them – keeping them happy and committed to your company.

How Does Your Small Business Save Money With A Health Spending Account?

As a small business owner, you will get 100% of your after tax eligible medical expenses turned into before tax business deductions. You will end up saving thousands of dollars in insurance plans by incorporating an HSA as a supplement or an alternative to your insurance plans. 


Depending on which carrier you have your HSA, you won’t be required to pay a float or annual fee. The only fee you will have to pay is an admin fee per claim, which is between 7 to 10%. That full amount (the claim plus the admin fee) will be charged to you and reimbursed to the employee electronically.


If you would like more information in regards to Health Spending Accounts in Canada, Perlinger Group Benefits can help. We have been offering exceptional group benefit plans since 1992. Our goal is to provide the best group health insurance plans to meet your business’ needs, regardless of the size of your business. We make it affordable and easy to get access to comprehensive benefits plans. Contact us today: Direct Line 403-217-5560 | Toll-Free 1-877-217-7829 | Email [email protected]

Posted in Small BusinessTagged group insurance plans, health spending account, HSA, small businessesLeave a Comment on How Does A Health Spending Account Save Money For Small Businesses In Canada?

Recent Posts

  • What Group Benefits Are Taxable In Canada?
  • What Is The Average Cost To Provide Employee Health Insurance?
  • Different Options For Health & Dental Plans For Small Businesses In Canada
  • What Does Group Health Insurance Cost In Canada?
  • Signs It’s Time To Review Your Group Health Insurance In 2020

Recent Comments

    Archives

    • March 2020
    • February 2020
    • January 2020
    • December 2019
    • November 2019
    • October 2019
    • August 2019
    • July 2019
    • June 2019
    • May 2019

    Categories

    • Blog
    • Health Insurance
    • Small Business
    • Travel Insurance
    • Uncategorized

    Meta

    • Log in
    • Entries feed
    • Comments feed
    • WordPress.org

    Get Started Today

    CALL NOW
    GET A QUOTE

    Contact Us Today

    group health insurance PK1

    202, 7710 5th Street SE Calgary, AB T2H 2L9

     

    1-877-217-7829

     

    Monday – Friday
    8:00am-4:30pm

    Facebook Linkedin Twitter
    • Home
    • Our Company
    • Testimonials
    • Contact
    • Home
    • Our Company
    • Testimonials
    • Contact
    group health insurance PK1
    group health insurance PK1
    • Group Health Benefits
      • Group Health Benefits
      • Dental
      • HCSA & Wellness
      • Additional Benefits
    • Group Retirement Plans
    • Group Health Benefits
      • Group Health Benefits
      • Dental
      • HCSA & Wellness
      • Additional Benefits
    • Group Retirement Plans
    • Individual Insurance
    • Locations
      • Calgary
      • British Columbia
      • Saskatoon
    • Consulting Services
    • Individual Insurance
    • Locations
      • Calgary
      • British Columbia
      • Saskatoon
    • Consulting Services
    ©2022 Perlinger Group Benefits  |  Terms  |  GrowME | Calgary Website Design