Professional Documents
Culture Documents
Are you a small business owner with staff? A Health Spending Account makes for a
great employee benefits package. It is a cost effective and flexible alternative to
traditional health insurance. Employers get value from an HSA as they get cost control
with their benefits (there are no premiums with an HSA). Moreover, an HSA is easy to
implement, manage, and the plan is customizable. Employees prefer an HSA as it is a
tax free benefit, coverage is complete, and the benefit is flexible.
Watch the video below to learn how an HSA can work for your staff.
Download my FREE Complete Guide to Olympia HSA to learn how to use an HSA for
my business with staff
Are you an incorporated individual? A Health Spending Account turns your after-
tax personal medical expenses into a before-tax business deduction.
Basically, you get to withdraw money from your corporation tax free to pay for your
personal medical expenses.
For example: if you earn $100,000 in Alberta, your marginal tax rate is 36%. You
would have to gross roughly $1.60 to bring home $1.00 after-tax. $0.60 of your gross
$1.60 (or 36%) would be taxed, leaving you with $1.00 after-tax. Keep in mind, medical
expenses are an after tax event.
On the bottom left (red), you see the total cost to your company when you pay for a
$3,000 medical expense with no HSA. To get $3,000 after tax to pay for your medical
expense, you must withdraw a gross amount of $4,800 from your company. $1,800 or
approximately 36% (of $4,800) is paid in income tax.
On the right side (green), instead of paying the government 36% income tax, you pay
Olympia an annual HSA membership fee of $499. Your company saves over $1,000 in
taxes by using an HSA. You can find out exactly how much you will save by using our
HSA savings calculator.
Watch the video below to see how an HSA works for an incorporated individual.