How do you create a flexible benefits environment in a small business or provide an enhanced compensation strategy while limiting tax exposure?
A Health Spending Account (HSA) is an exciting, tax-advantaged vehicle which can bring more flexibility to your benefits strategy. The Health Spending Account is essentially a bank account for benefits. It allows the employer to provide employees with a pre-determined amount of credits that can be used for any eligible medical or dental expense. The employee is reimbursed with pre-tax company dollars, which means your employees are using less after-tax salary for health care costs. In benefits surveys, Health Spending Accounts are highly ranked as a valued benefit by executives and employees. In addition, these plans are an essential tool for the business owners considering that any health or dental expense paid with after tax dollar could be a 100% deductible business expense using the HSA.