Whether you are self employed or have a large team, a Health Spending account might innovative way to add attract new employees and control your budget.
Traditional benefit plans are perfect for some companies; however, they aren’t ideal for all. Where we see the most frustration with a traditional plan is regarding to coverage limitations and overwhelmingly, the renewal costs. For example, if your employee’s usage of the plan is much higher than estimated by the insurance company, you could see significant rate increases on your renewals each year. Yes, that is exactly what I said, the more you use the benefits, the more likely that your costs are going to go up the following year upon renewal. This can make it exceptionally hard to manage costs year over year. Due to this, more companies are opting for a Health Spending Account (HSA).
Whether you’re looking for a unique top-up to existing traditional plan or setting up an HSA as a stand-alone policy, it can be utilized to create custom benefits package for practically any business.
Some of the benefits of an HSA are:
- Complete Cost Control
Build plans with set amounts to stay within your budget – never worry about going over or increasing costs. - No monthly or yearly fees
The HSA we prefer* to use has no set up fees or monthly premiums; a small tax-deductible administration fee is charged to your business only when a claim is made. No claims, no costs. - No Prefunding
The HSA provider we use (myHSA), is a pay-as-you-go model, you do not have to keep money within the HSA account. When a claim is made, the money is withdrawn directly from your business bank account to reimburse the claimant. No more third-party administrator holding your money, it stays in your bank account until it is needed. - Flexibility
Offer health, wellness, or combined plans – let employees decide what they spend their benefit dollars on. - No Paper
Our platform is completely paperless as everything is accessed online or though a phone app. No need to send in paper expense receipts, simply scan it or take a photo with your phone, upload it, choose your expense category and it is done.
In a world where large organizations have a team of recruiters to hand pick the perfect candidates, small businesses need to be strategic with the decisions they make to attract and retain qualified talent.
What if your self employed, are you still eligible?
HSAs have evolved over the recent years and the Canadian Revenue Agency (CRA) now allows its use for small to medium corporations, partnerships, and sole proprietors. This is a tremendous benefit to business who now have more options in health and dental coverage for their employees, themselves, and their families.
For incorporated businesses: the owner, employee(s), and immediate family (spouse, common-law partner, dependent children) are eligible. The plan limits can differ between the classification of the employee(s). Each employee has a pre-determined spending limit this is set for his/her household; therefore, his/her spouse or children are eligible to use up to that limit each year.
For un-incorporated or sole proprietor: the owner and their employees are also eligible if the there is least one arm’s-length employee. There cannot be different classifications for each employee (ie- each must have the same spending limit).
For more information on Health Spending Accounts or traditional group benefit plans, we are here to help.
To find out more information, call or email Pam directly or you can visit her website at https://savanti.ca/
