Do you want to improve your benefits plan but not sure where to start? Or maybe you're conflicted between a health care spending account and a lifestyle spending account. Flexible/Flex spending accounts can give you the choice and flexibility in a customizable benefits package to meet your employee's health and wellness needs.
Frequently Asked Questions
What are some benefits of a flexible spending account for employees?
Your employees are all unique and have different needs when it comes to their health and wellness. With a flex plan, your employees can choose where to allocate credits between two accounts: Health Care Spending Account (HCSA) and/or Lifestyle Spending Account (LSA).
What are some benefits of a flexible spending account for an employer?
If you're an employer looking for a budget-friendly benefit plan, flexible benefits can be a mechanism for cost control. You have the choice to define the level of funding (benefit dollars) for the account, which you can complete on an annual basis. These accounts can be provided on a stand-alone basis within a traditional benefits plan or as part of a flexible benefits plan.
What is a health care spending account?
Health Care Spending Accounts (HCSA) are non-taxable benefits to employees. They are used to pay for health and dental expenses not covered under their benefits plan, deductibles, co-insurance, or private medical costs such as an MRI. Expenses that are deemed eligible under the Canada Revenue Agency (CRA) and tax guidelines.
What is a lifestyle spending account?
A Lifestyle Spending Account (LSA) is considered a taxable benefit to employees and is used to pay for a wide range of eligible expenses supporting your employees and their families' mental, physical, and financial wellbeing. Statements are provided at year-end to use for payroll-related taxes and deductions. Eligible expenses under your LSA are selected by you, the employer, and structured by categories such as:
- Fitness Related Services and Equipment
- Health and Wellness Related Services
- Maternity and Childcare expenses
- Education and Personal Development
- Cosmetic Procedures
A flexible approach to benefits spending
Flex Spending Accounts are ideal when you want to provide your employees with increased engagement and greater flexibility within their benefits plan. Flex accounts are a cost-containment strategy against rapidly growing health care costs and can fit into any size budget.