Frequently Asked Questions
Why is There an Administration Fee?
We verify every single receipt submitted. Some Health Spending Account providers only do spot-checks, some only check every 7th receipt.
Not having all your receipts verified has cost companies an additional 30% for the program plus the taxes owing and penalties to CRA. An 8% administration fee is worth the savings!
What Expenses are Eligible
Spouse's benefit premium contribution.
Other eligible costs not covered by spouse's existing benefits plan
Medical Cannabis expenses
Medication and/or treatment for
Medical treatments and expenses.
Who is Eligible for Coverage?
You or your spouse's or common-law partner's children who were 18 years of age or older at the end of the tax year, or grandchildren
Any person dependent on you or your spouse or common-law partner: parents, grand-parents, brothers, sisters, aunts, uncles, nieces, or nephews who were residents of Canada at any time in the year.
How Do We Submit Claims?
You and your employees download our app to a mobile phone.
Take a photo of the receipt
Submit photo of receipt directly to our team, ensuring privacy.
Our team reviews it for eligibility
Our team e-transfers the reimbursement directly to the employee, typically within 2-3 business days.
Why must Receipts be Verified?
To save you money. If you reimburse an ineligible employee’s medical expense it comes out of your pocket, not the account.
To protect you during CRA audits. An Audit which uncover reimbursed but ineligible medical expenses will cost you taxes owing plus PENALTIES.
Can I use a Health Spending Account to Reduce Staff Turnover?
Definitely. Studies show that a Health Spending Account, coupled with a Lifestyle Account, is very attractive to a wide variety of demographics... from young singles, to couples, families and seniors!
"Gallup says the cost of replacing an employee can range from one-half to two times the employee's annual salary". This expense includes advertising, screening, interviewing and training. Your situation may be less expensive, but there is still a cost and loss of productivity caused by the staff disruption.
What is the Cancellation Fee?
Zero. There is no fee for cancelling a Health Spending Account.
What happens to funds remaining at the end of the year?
Any money not spent within a year can be added, once, to the following year's allotment, or it can be returned to your business.
What size of company do I need to offer a Health Spending Account?
Any size, from one (1) employee to hundreds. The Health Spending Account is scalable for all sizes of companies
Even a one person incorporated business is eligible for a Health Spending Account.
Is a Sole Proprietor Eligible for a Health Spending Account?
A sole proprietor must have at least one arm's length (not related) employee to be eligible.
Should I / Can I Provide Benefits
to a Contractor?
You can only provide benefits to an employee. If you provide benefits to a contractor, CRA will deem them to be your employee. All taxes, fees, rights, responsibilities, etc., will be assigned accordingly to your working relationship.
Creatively, the contractor can set up a Health Spending Account within their own corporation, and include the fee for same within your arrangement.
I employ Immigrants.
Are they Eligible?
Absolutely. You can offer your staff a Health Spending Account regardless of immigration status.
Must I Provide Benefits?
There is no legal requirement to provide benefits to any employee or contractor. Providing benefits is a voluntary choice for the employer.
Given the competitive job market today, however, not offering some type of benefit in addition to salary may make it difficult or even impossible for an employer to hire and retain quality employees.