Health & Wellness Spending Accounts

Empower Your Employees with a Tax-efficient,
Flexible Benefit Plan

Sign up now

Health Spending Accounts

What Is a Health Spending Account?

A Health Spending Account (HSA) is a flexible, tax-efficient alternative to traditional group health plans. Instead of choosing a one-size-fits-all benefits package, employers allocate a set amount of money—usually annually—for each employee to spend on eligible healthcare expenses.

Employees can use their HSA funds for a wide range of medical services and products, including dental care, prescription drugs, vision correction, mental health therapy, paramedical services (like massage or physiotherapy), and more. As long as the expense is approved by the Canada Revenue Agency (CRA), it’s reimbursable.

For employers, HSAs are fully tax-deductible. For employees, reimbursements are tax-free—making HSAs a powerful tool to offer meaningful benefits without the administrative complexity or cost of traditional group plans.

Whether you're a solo entrepreneur or managing a team of 50, an HSA gives you the flexibility to support health needs that matter most—without overspending on unused coverage.

Why Choose a Health Spending Account?

Flexibility: Employees decide how to use their benefits.
Cost Savings: Fully tax-deductible for employers and tax-free for employees.
Simple Setup: Manage everything through an easy-to-use portal.

How Businesses Are Using HSAs

A Solo Consultant Maximizes Her Tax Savings
Erin, a self-employed marketing consultant, doesn’t have a traditional group plan. She sets up an HSA with $2,500 annually. Throughout the year, she uses it for massage therapy, vision correction, and dental cleanings—all tax-free. As a business expense, the full $2,500 is deductible, saving her hundreds in taxes while prioritizing her health.

A 10-Person Tech Firm Boosts Retention
Alex runs a fast-growing software company. Instead of managing a complex group benefits plan, he gives each team member a $1,500 HSA allowance and a $500 WSA. Employees love the freedom to choose how they spend it—some opt for therapy, others for new glasses or gym memberships. Employee satisfaction scores rise, and the company sees a 20% improvement in retention over 12 months.

A Trades Business Simplifies Benefits for Contractors
Daniel runs a small contracting business with both full-time and contract staff. With an HSA, he offers benefits to both groups without navigating traditional insurance plans. His workers get reimbursed for everything from physiotherapy to dental work, and Daniel gets full tax deductibility with zero hassle. 

Wellness Spending Accounts

What Is a Wellness Spending Account?

A Wellness Spending Account (WSA)—sometimes called a Lifestyle Spending Account (LSA)—is a taxable benefit that allows employers to support the broader well-being of their employees beyond traditional health and dental care. Employers set an annual amount that employees can use for eligible wellness-related expenses.

Unlike HSAs, which are limited to CRA-approved medical expenses, WSAs cover a wide range of lifestyle expenses that promote physical, mental, and emotional wellness. This could include gym memberships, yoga classes, personal training, meditation apps, fitness equipment, nutritional counseling, life coaching, and even professional development.

The reimbursement is taxable to the employee, but the full amount is a deductible business expense—making it an attractive, customizable way to enhance workplace satisfaction and engagement.

Why Choose a Wellness Spending Account?

Broader Coverage: Employees can use WSAs for non-medical wellness expenses, such as fitness memberships, personal development, and mental health services.
Flexible and Customizable: Employers can define eligible expenses to align with company values and employee needs.
Tax Efficiency: While taxable for employees, WSAs are fully tax-deductible for employers, making them a cost-effective way to invest in employee well-being.
 

How Businesses Are Using WSAs

A Boutique Agency Prioritizes Mental Health
A creative agency with 8 employees offers a $1,000 annual WSA. Team members use the funds for counselling, meditation retreats, and online mental wellness programs. As a result, the team reports less burnout and higher productivity during client-heavy months.

A Law Firm Supports Personal Growth
A mid-sized law firm introduces a $750 WSA with a focus on personal development. Eligible expenses include executive coaching, language classes, and courses on stress management. Employees feel valued and supported, and the firm sees improved morale and loyalty.

A Startup Encourages Active Lifestyles
A tech startup allocates $500 per year per employee for fitness-related expenses. Some buy bikes for commuting, others get wearable fitness trackers or subscribe to virtual workout platforms. The WSA becomes a key part of the company’s employer brand and helps attract health-conscious talent.

 
Take control of your employee benefits today with our simple self-serve sign-up portal. Streamline your business’s offerings with tax-efficient Health and Wellness Accounts—flexible, affordable, and easy to manage.

Who can set up a Health or Wellness Spending Account in Canada?

Incorporated businesses in Canada can set up an HSA or WSA—even if there’s only one employee.

If your business is unincorporated (a sole proprietorship or partnership), you’ll need at least one arm’s-length employee (not a family member or business partner) to qualify.

 

What can be claimed under a Health Spending Account?

Eligible claims typically include medical, dental, vision, and paramedical expenses (e.g. chiropractors, massage therapists). See CRA's list of eligible expenses for details.

What can be claimed under a Wellness Spending Account?

It depends on your employer’s plan design, but typical eligible expenses include gym memberships, personal training, yoga classes, meditation apps, life coaching, wellness retreats, nutrition counselling, and even professional development like language or leadership courses. Employers can customize what’s covered to align with their company values.

Are WSAs taxable for employees?

Yes, WSAs are considered a taxable benefit to employees, but they are fully tax-deductible for employers.

Can HSAs and WSAs be used together?

Absolutely. Many employers use both to provide a well-rounded and flexible benefits package.

Do I need a traditional group benefits plan to offer an HSA?

Not at all. HSAs can stand alone or supplement an existing plan.