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WELLNESS SPENDING ACCOUNTS

What Is a Wellness Spending Account?

A Wellness Spending Account (WSA), which is sometimes called a Personal Spending Account (PSA), provides a method for employers to fund non-traditional benefits to employees which contribute to their overall health and well-being and promote healthy and active lifestyles. These are particularly popular among employees in the younger age demographic and can set your company apart from the competition.

What are the Tax Implications of the Plan?

The Employer can deduct 100% of the cost of the plan as a tax deduction. However, the allowance is a taxable benefit to the employee and will be listed on their T4.

What Expenses are Covered Under a Wellness Spending Account?

Unlike with an HSA, it is the Employer who chooses what expenses they will and will not cover under a WSA, but the list of eligible expenses is almost endless. The following are some examples of eligible WSA expenses:

  • Gym Memberships

  • Weight Loss Programs

  • Relationship Counselling

  • Child Care

  • Smoking Cessation Programs

  • Education Fees / Tuition / Books

  • Bicycles

  • Even Running Shoes!

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