Picking the right type of plan can be difficult, but ensuring your employees have access to benefits that help support their needs is essential. When offering an HSA and WSA to your employees, it can be hard to know exactly what each person may need, what if you could give the employee some control over how much they can use towards Health and Wellness? This is where a Flexible Health Spending Account can come into play!

What is a Flexible Spending Account (FlexPlan)?

A FlexPlan is where an employee can allocate their benefit dollars between their Health Spending Account (HSA) and their Wellness Spending Account (WSA). They get the opportunity to tailor their plan to fit their individual needs, offering a highly personalized benefit experience. In this post, we will go over the differences between HSA, WSA, and FlexPlan’s.

What are the differences between an HSA, WSA, and FlexPlan?

Health Spending Accounts (HSA)

A Health Spending Account can be set up as a primary or supplemental (top-up) plan and covers eligible healthcare expenses such as dental, vision, health, and prescriptions. The employer gets to choose how much their employees get towards these benefits for their benefit year and we must follow CRA guidelines regarding what types of items are eligible for reimbursement. HSA accounts are 100% tax deductible to the employer and are 100% tax free reimbursements for the employee. The employer would decide the amount available, and it could not be adjusted aside from an employer request.

Wellness Spending Accounts (WSA)

A Wellness Spending Account is typically used to help cover the expenses that cannot be claimed under a Health Spending Account and are more geared towards the employee’s overall wellness. What is wellness exactly? Wellness is the act of practicing healthy habits to work towards better physical and mental health to help yourself thrive. Some eligible items within the Wellness Spending Account include gym memberships, fitness equipment, pottery classes, food processors, first aid/CPR training, and so much more. A WSA is a great way to show your employees that you see them as a person and not just another number. The wellness spending accounts are 100% tax deductible to the employer, but they are a taxable benefit to the employee. This means that at the end of your benefit year, the employer will receive information as to how much was used for the WSA and they will add it onto your T4 for tax season. The employer does decide the amount available, and it could not be adjusted aside from an employer request.

Flexible Spending Accounts

A Flexible Spending Account is a great way to provide your employees with flexibility and freedom that is comprised of two primary components, an HSA and WSA. The FlexPlan gives you the ability to let your employees choose where their individual needs fall for their next benefit year. One month before the plan renewal date, the employees would have access via their online portal to decide how much of their benefits they want to use towards their regular HSA and how much of their benefits they want to use for their WSA. The employer will set a minimum and maximum amount as to how much the employee can allocate towards their WSA, this is just so that the employee does still have access to funds for their basic health needs as well. This option really elevates the employees’ sense of freedom and gives them a say on how they are using their benefits. The employer decides the overall maximum of benefits they would like to offer for the HSA and WSA combined then sets a percentage limit as to how much can be allocated towards the WSA. In the end, the employee gets to choose how much they need for each area within the framework that the employer has laid out.

Empowering Your Team

A FlexPlan helps empower the employees by giving them the opportunity to choose what they need. Not only does this give the employee control of their own needs but also reflects a happier and healthier workforce. While the HSA focuses on health and medical costs, the WSA supports wellness and lifestyle benefits. This combined approach offers comprehensive coverage and promotes overall well-being. Provide your team with benefits that really make a difference.

Want to learn more on what a FlexPlan could offer you and your employees, or do you have questions on how to get started? Reach out to us at Quikcard and we will help you build exactly what you need. Contact us today.

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