Health Care Spending Accounts - What Can Go Wrong? - BeniPlus

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  • Fill in some basic information and we will date-stamp your account and send you an email with everything you need to get started. You and your employees will then be eligible to claim healthcare and wellness expenses incurred after the date-stamp. All you will need to do is fill in the online paperwork and you will be ready to go.
    I hereby confirm that I am the owner of the company or authorized by the owner of the company to set up a group benefit plan for the company.
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Most people have a reasonable level of caution regarding new ideas and often wonder what can go wrong? Rather than have you guess, here are some common examples of things that we see go wrong:

What can go wrong?

Abuse by owners who try to put larges expenses through the account by their ownership versus employment status.  This turns your Health Care Spending Account into a shareholder benefit versus an employee benefit.  The expense is no longer deductible, and the reimbursement is now considered taxable income.

Only expenses incurred after the account is established can be reimbursed.  Old expenses that pre-date the Health Care Spending Account are not eligible.  Only medical expenses can be reimbursed.  The Canada Revenue Agency provides a comprehensive list on their website.  Once again: medically necessary, out of pocket, provided by a certified medical practitioner licensed within the scope of their expertise.

Beyond the above, this is a low risk, simple, flexible and affordable business tool that allows business owners to provide a wonderful tax efficient form of compensation that will be appreciated by employees.  A Health Care Spending Account is a great way to compensate team members and an important step toward happy, healthy and productive employees.



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