Small business owners all over the globe scratch their heads when they have to figure out the best way to provide medical coverage to their employees, and Canada is no exception. It’s said taht 60 percent of Canadian employers are concerned about the quality of the health plans they’re offering their employees. Even though 91 percent of Canadians are reported to favor their country’s health care policies over those of the United States, there’s still some gray area when it comes to the best way for employers to provide their employees with affordable and practical small business health benefits care plans.
Among the most popular small business health insurance plans is to provide employees with a health spending account CRA. A health spending account (or HSA) is a group benefit program that can reimburse employees for a broad range of eligible medical expenses. The guidelines for administering a health spending account CRA are enforced by the Canada Revenue Agency according to their guidelines (i.e. this is what CRA stands for).
Also those on the lookout for tax saving tips, especially tax tips for Canadians, will be pleased to know that recent changes have made it possible for employees to put their company bonuses directly into their health spending account CRA without the value of the bonus having to be taxed as it normally would. This is a good thing to know, especially for employees who already wanted to use their bonus pay to beef up their health spending account CRA.
Every year, sponsors of the health spending account CRA plan allocate a number of credits to each employee’s account. These credits can be used to cover the cost of medical services that may not already be covered by provincial insurance plans or other company benefits. This benefit is available both to employees and their dependents.