A Health Spending Account (HSA) is a flexible, tax-efficient way for Canadian employers to support employee health and wellness. Unlike traditional group benefits, HSAs allow you to allocate a pre-set annual amount per employee—covering a wide range of eligible medical and dental expenses under the Canadian Income Tax Act.
HSAs are especially valuable for small to mid-sized businesses, professional firms, and owner-operators looking for predictable benefit costs without the complexity of traditional plans.
Enquire about Health Spending AccountsWhat Can Employees Claim?
Employees and their qualified dependents can use HSA funds for expenses such as:
- Deductibles and co-pays
- Prescription drugs
- Paramedical services (e.g., massage, physio)
- Eyeglasses and laser eye surgery
- Orthodontics and dental work
- Smoking cessation programs
Tax Efficiency
From a tax perspective, an HSA is fully deductible to the business and non-taxable to employees. That makes it one of the most cost-effective benefit solutions available. When set up and administered correctly, HSAs qualify as Private Health Services Plans (PHSPs) under the Income Tax Act, ensuring full CRA compliance.
Flexibility for Employers
Employers have full control over:
- Who qualifies for the HSA
- How much is allocated per employee
- Creating different benefit levels for various employment classes
Note: Owners must receive the benefit in their capacity as employees—not shareholders—to ensure CRA compliance.
Why Use myHSA?
myHSA offers a streamlined, paperless platform that simplifies administration for both employers and employees:
- Real-time tracking of claims and balances
- Secure employee accounts for digital claim submission
- Claims processed in 1–3 business days
- Funds transferred directly to employees via the company’s bank account
- 24/7 support via live chat
Cost Control and Simplicity
With no setup fees and no monthly premiums, myHSA runs on a pay-as-you-go model. You only pay when a claim is submitted. The only additional cost is a 10% administration fee (plus applicable taxes), offering full transparency and cost predictability.
| Traditional Group Benefits | Health Spending Account (HSA) |
|---|---|
| Fixed monthly premiums | Pay-as-you-go model |
| Limited coverage categories | Covers any CRA-eligible expense |
| Use-it-or-lose-it structure | Unused funds stay with employer |
| Less flexible for different roles | Customizable per employee class |
| Complex administration | Simple digital platform (myHSA) |
A Smarter Benefits Strategy
Whether used alone or alongside a traditional benefits plan, an HSA helps you support your team while managing costs effectively. If employees don’t use their full HSA amount, your business keeps the difference—making this one of the few benefit solutions with built-in cost control.
Want to see how an HSA could work for your business? Contact our Employee Benefits team today to get a quote or discuss a custom setup.
Health & Benefits Login to your myHSA account
Jennifer Harris
Director, Employee Benefits
I’m Jennifer Harris CFP, GBA, the Director, Employee Benefits at O’Neill Group Global, now part of Axis Insurance. Specializing in benefits planning for employees and executive teams, I have a passion for helping companies find the right solutions. Whether working with clients locally, nationally, or internationally, my goal is to ensure that these programs are comprehensive, competitive, and cost-effective. No matter where in the world my clients reside, they can be confident that they have the right protection and support.
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