Health Spending Accounts (HSAs) are self-insured health plans arranged by employers for their employees residing in Canada. They provide a way that small businesses can provide tax-free health and dental benefits to their employees (and their employees’ family members). This makes the HSA appear to be an extremely attractive and cost”‘effective way of getting and providing health and dental benefits.
However, a valid HSA plan must conform to private health service plan rules set out in the Income Tax Act. The information in the link below clarifies the rules on what are acceptable Health Spending Accounts.
For more information visit CRA Tax Tips Page
