A Better Way to Cover Health Expenses
A Health Spending Account (HSA) is a benefit that your corporation can set up to reimburse you, an employee of your business, for eligible personal health expenses up to a set annual limit.
When structured correctly, an HSA qualifies as a Private Health Services Plan (PHSP) under CRA guidelines.
The result? Instead of paying for health expenses with after-tax personal income, your corporation covers the cost through the HSA and deducts it as a business expense.
Hiveworks simplifies it all - setup, compliance, and reimbursement.
Savings Example
Jeff is an incorporated IT Contractor and Anne works for a small business with no benefits. Jeff earns $125,000 annually. They have two children and live in Toronto.
As a family, they spend $5,000 annually on health expenses.
No HSA
Hiveworks HSA
Salary Expense to Business
Personal Income Tax
After-Tax Salary Left for Healthcare
Hiveworks Annual Fee
Taxes
Healthcare Costs Expensed to HSA
Total Expensed to Business
SAVINGS
Have spousal benefits? Here's how to pair them with an HSA.
Eligibility
Only expenses incurred after your plan’s start date can be reimbursed so don't delay
Incorporated Individual
No employees except your spouse or dependants
Need to discuss with your accountant? Share this guide with them.
Small Business
Multiple employees who are not related to you
Coming Soon
Our small business offering will be available at the end of Q3 this year.
This will allow you to set up HSAs for all employees in your organization and set limits based on role types.
Leave your email below to receive updates on our launch!
How it Works
A simple, fully digital experience
1. Pay for Health Expenses
After signing up for Hiveworks, continue to pay out-of-pocket for health expenses like you normally would.
2. Submit Your
Claim
Upload your receipt and submit your claim in minutes via our secure web app.
3. Your Corporation Pays Us
Once your claim is approved, we invoice your business for the total amount (health expenses, taxes).
4. We Reimburse
You
After your business pays, we reimburse you personally for the claim amount and provide clear documentation for easy bookkeeping.
FAQs
More Questions? See our FAQ section or Contact Us.
Is a Health Spending Account CRA compliant?
Yes. A Health Spending Account (HSA) is fully compliant with CRA rules when it’s set up and administered correctly. The CRA classifies this type of benefit as a Private Health Services Plan (PHSP). Your corporation acts as the plan sponsor and reimburses you, the business owner, for eligible medical expenses. As long as your plan meets CRA’s PHSP criteria and only reimburses eligible expenses, it qualifies as a tax-free benefit and a deductible business expense.
What if my spouse already has benefits?
Even if your spouse has a health plan through work, you’re still likely paying out of pocket. Premiums are almost always deducted from their paycheque, most plans don’t fully cover everything and also have category maximums. With a Hiveworks HSA, you can:
Reimburse the health and dental portion of premiums your spouse pays
Claim the uncovered 10 to 30 percent or portion above the maximum limit of eligible expenses
Cover health costs their plan doesn’t include at all, like orthotics, therapy, or braces
Your HSA doesn’t replace their coverage. It fills in the gaps. See our article on how our HSA can work with spousal benefits.
Are braces / orthodontics an eligible expense?
Yes, orthodontic work like braces are eligible as long as it’s for medical reasons and performed by a licensed medical practitioner.
How do I share this with my accountant?
Simple. Just send them this technical guide. It covers how the Hiveworks HSA works and how it complies with CRA eligibility rules.
Can I submit expenses from before I signed up?
No. Your Hiveworks HSA only covers expenses incurred on or after your plan's effective date, which is the day you sign up. Anything dated before that isn’t eligible for reimbursement under CRA guidelines.
If you had HSA coverage with another provider and are switching to Hiveworks, contact us. We’ll help ensure there’s no gap in your coverage.
Start Saving Today
Only expenses incurred after your plan’s start date can be reimbursed so don't delay
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