Big or small, if you run a business in Canada, you need to understand and weigh the benefits of providing a Health Spending Account (HSA) to your employees. HSAs for all businesses are a secret weapon in employee benefits and perks that every Canadian business should understand – particularly the tax implications an HSA affords you. HSA benefits offer larger tax benefits to your business than traditional group benefit plans. Also, they have very few healthcare restrictions, no matter your company size. Their flexibility means almost no other group plans can compete with an HSA in terms of routine health spending.
HSAs for all businesses of all sizes provide employees with affordable health benefits. The best employee HSA provider for your company, on the other hand, is determined by your firm’s needs. It is critical to assess the benefits of an HSA for your company. More significantly, knowing how an HSA plan would benefit your organization based on your size allows you and providers to create a plan that is as unique as you are.
Small Businesses and Entrepreneurs
HSAs are perfect for small businesses and entrepreneurs. Small businesses across Canada are discovering Health Spending Accounts and using them to provide primary or secondary health coverage to employees and to themselves. As you focus on expanding your business and revenues, a health spending account is the ideal option for your team’s group benefit needs.
HSAs allow you to keep spending under control which is one of the top goals for most businesses as they expand. Premiums for traditional group benefit plans change annually and are calculated based on the total plan usage by group members, which is unknown. The costs of an HSA are set by you, the employer and will only rise if you decide to increase the amount. Furthermore, if the benefits are not used by the employees, HSAs for all businesses pay returns to the employers (HSA Easy Pay provides options within employer discretion to rollover or to have funds refunded). Both the employer and the employee benefit from Health Spending Accounts, which are tax-free. It’s a cost-effective strategy to reduce employee health-care expenditures while also providing a broader choice of traditional and non-traditional health-care services.
Medium Sized Businesses
Health spending accounts are an excellent health benefit alternative for medium sized businesses. As a medium sized business, Health spending accounts should be viewed as both a recruiting and retention tool. HSAs are the single most important inducement for an employee to stay with a company. For medium sized businesses replacing employees can be a costly and unwanted expense; by providing an HSA allows employees to confidently engage in their health decisions, resulting in increased health and satisfaction. And, in turn, gratitude for your contribution to their healthy lifestyle choices and outcomes. They profit, as do you, from increased engagement and productivity while minimizing attrition, hiring/training costs, and overall benefit costs.
According to the 2020 Sanofi report, 88 percent of companies with 1,000 or more employees would welcome the transition to health spending accounts. Employees want the freedom to spend their money where they want rather than being told where to spend it through traditional group perks. When it comes to healthcare, each employee is unique and has their own requirements. As a large firm, you can make your employees feel valued and acknowledged by including HSA benefits in their overall pay, giving them health independence and flexibility.
Your Health and Wellness Insights
The finest Employee HSA provider for your company is chosen by the demands of your company. Prepaid options, such as what HSA Easy Pay provides, are a great way to ensure your team is never out-of-pocket for health expenses. Knowing how an HSA plan will benefit your company based on its size allows you and your providers to design a plan that is as unique as you are.
To learn more about the advantages of having an employee health spending account plan, visit HSA Easy Pay today!