They’re a great way to support your employees and their families. Employee benefit plans usually provide comprehensive coverage for things like prescription drugs, vision care, paramedical services, disability coverage, accident and serious illness and more. You, as the employer, pay premiums that cover claims for healthcare expenses made by your employees.
Typically, employee benefits plans are a type of insurance. Enhancing employee benefit plans with health spending accounts The money you put in an employee’s health spending account is a tax-deductible business expense. When the account gets to zero, they are no longer reimbursed. When the employee or their family incurs an eligible expense (as determined by the Canada Revenue Agency), they pay for it out of pocket, and then they submit their receipt to the benefit provider and are reimbursed for the expense. As the employer, you choose how much each employee gets in their account for each year. However, they’re not always the best option to replace an employee benefits plan (sometimes called a “standalone Health Spending Account.”) What is a Health Spending Account?Ī health spending account (commonly known as an HSA) acts like a bank account that employees can access to be reimbursed for eligible health and dental expenses. They’re a straightforward, easy way to support your employees with coverage. Health Spending Accounts (HSAs) are becoming increasingly common in employee benefit plans.
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