What is the difference between an HWT and a PHSP?
Private Health Services Plan (PHSP) ~ back to top How does a Health Spending Account work? The company makes a contribution on behalf of an employee(s) into a Health Spending Account to be used on medical expenses incurred. It is a non-taxable benefit for the employee and a 100% business deduction for the company. Contributions are determined at the start of the program for each employee enrolled. The contribution amount, once set at the start, can not be changed within the first 12 months. Changes can only be made at the anniversary date or if a life event has occurred (A Life Event is defined as a marriage, birth or death in the family). What are the costs associated with opening a HSA? These can vary, but the plan administrator we recommend, unlike many, charges no set-up fee. There is a single one-time charge, as funds are deposited to your HSA, of 10% (plus applicable taxes which do vary by province). There are no on-going charges. What is the advantage to opening a HSA? Health ca
