Are you a licensed broker who's is looking for an alternate solution to traditional benefits packages for your small business client? Health Spending Accounts, Canada's Best Kept Secret covers:
- The benefits of Health Spending Accounts (HSAs)
- Eligible expenses covered by HSAs
- What sets CustomCare apart
Here are the Questions and Answers from our Webinar held March 8th, 2018. To get the link to the recording, please feel free to contact firstname.lastname@example.org.
Questions and Answers
Q. If allotted funds are not used in one year, can they be carried over?
A. With CustomCare at time of setup, you have the option to choose a roll over or forfeit option for unused amounts. If roll over is choosen, it will only roll over for a maximum of one year.
Q. How does the 2018 Federal budget change HSAs for business owners?
A. Some information has become available, but we are limited in what we know. So far, comments have only been directed at health and welfare trusts (not PHSPs or HSAs). With a health and welfare trust, the money that is deposited into those accounts is held in trust to the members name. Therefore if a plan member terminates for instance, the money then goes with them. With PHSPs and HSAs, if they are terminated, the account terminates as well. So far, there is no impact to HSAs, but we are expected to learn more as we approach the summer months.
Q. Is this plan suitable for shareholders or just employees?
A. There is a bit of a gray area when it comes to the business owners as shareholders. If the individual is a shareholder, but is not actively involved in the business, then this is not an appropriate option for them. If the business owner can prove that they are actively involved in the day-to-day activities of the business, then the governments position has to date been that they are entitled to comparable benefits to what other organizations might offer staff of their level. The easiest way to justify their involvement in the business is through showing T4 income as dividends can be muddy.
Q. Will sole proprietors be able to enroll again?
A. Hard to speculate on that question, but there is nothing in the near future that suggests that this option will be available again, but CustomCare is only able to work with incorporated businesses at this point.
Q. How are employee contributions treated in Quebec?
A. CustomCare does not operate in Quebec at this time because of the taxable status of health and dental premiums, it doesn't make HSAs all that valuable.
Q. Can you claim out of country receipts (for example, buy prescription glasses in Mexico)
A. You can cover expenses from other countries so long as they are prescribed by a licensed medical practitioner, the amount claims is in Canadian dollars, the receipt is translated into English, and proof of the exchange rate for the day of the transaction (Visa statement or exchange rate site).