What is a Health Spending Account?
A Health Spending Account (HSA), governed by IT339R2 and IT529 as prescribed by Canada Customs and Revenue, allows Corporations to offer their employees access to a wide range of health and dental services in an effective and cost-efficient manner. An HSA provides an employer with an alternative to traditional Group Health Insurance plans, without the complex and costly administration associated with them, or can be used in conjunction with an existing plan to allow a wider use of medical services, and allow employees more flexibility in what medical and dental services they can use.
The HSA provides a pre-determined dollar amount per Fiscal Corporate Year for each eligible employee. Money deposited in the account can be applied to eligible expenses outlined in the Eligible Expenses Section of this document.
Rodney Pimm Insurance Benefits Inc. hereinafter referred to as RPIBI administers the plan ensuring it is eligible under the Income Tax Act.