Not all employees are the same so why should their benefits plan be? Health Spending Accounts (HSAs) are a way to provide additional compensation for partners or key executives that is tax-effective. Pay raises and bonuses are taxed whereas HSAs are a non-taxable benefit that allow employees to use 100% of the funds.
Convincing your clients:
– Tax deductible expense for the corporation
– Non-taxable benefit for executive employees
– More cost effective option vs. a pay increase or bonus
– More perceived value to executives from flexibility
Getting started:
– Need analysis – educating clients on this option
– Employer has the flexibility to choose the contribution amount (per employee class)
– Can be implemented at renewal or mid-year
– Ability to integrate into any group plan
Interested in discussing more strategies and examples of how to leverage an HSA for executives?Contact your Benecaid Benefits Consultant or email us at advisors@benecaid.com.
For Benecaid’s Health Spending Account terms and conditions please click here.
