ProInsure - Business Insurance, Estate and Succession Planning
We blog on various topics but the heart of our practice is helping people with their daily challenges and problems and providing thoughtful solutions to these problems and challenges, whatever they might be.
If you are a business owner you should think about opening a health spending account.
If your business is incorporated and you pay yourself a T4 income you can deduct dental, medical and prescription drug expenses as a business expense by setting up a Health Spending Account. Not only are the expenses a deductible business expense but the benefit is tax-free.
You, your dependents or other employees do not pay any tax on the benefits paid by the company – it’s a win-win!
If you have employees a Health Spending Account is a great alternative to insured group benefit plans. Many business owners are reluctant to offer their employees an insured plan because the plans tend to get more expensive over time. With a health spending account an employer can offer each employee a fixed amount. Once the benefit limit is reached that's it, the employee will have to pay personally for any additional expenses. It is a great way to provide benefits to employees and stay on budget.