For small business owners, one of the hardest parts about keeping your business going is the annual increase in cost of the traditional type of employee health insurance plans. With all of the taxes in general, finding something that will not be as expensive, while still covering your employees, is the best bet to alleviate some of the financial burden. That is why you should look into a Cra health spending account. Also known as a health savings account, the CRA HSA can save the day.
The CRA health spending account eases the challenge of the traditional employee health insurance by offering a different alternative. Health spending accounts are a more cost effective, tax advantaged way to provide your precious employees with health benefits. Around 30 percent of Canadian health expenditures usually come from private sources, from insurance, Cra health spending accounts, and out of pocket payments.
HSA plans are a perfect match for the Canadian health care system. Due to its preventative care and early detection processes, it stresses the importance of yearly checkups, and encourages them. And as such, life expectancy is extended, as is quality of life. And overall costs are reduced. This is perfect for the HSA, because when you do little, cheaper visits on a yearly basis, it is easier to use your HSA, and the funds within can cover more of the costs, as opposed to set deductibles through more traditional insurance. The same can be said for pharmaceutical medication. Which is actually covered for the elderly and indigent populations of Canada.
With an HSA in place, businesses and individuals alike can celebrate Tax Freedom Day altogether. This holiday is the estimated date that the average Canadian is said to have paid off all of their taxes to the three levels of the government, the local, the provincial, and the federal. In 2012, that day was June 11th. But, as the burden always seems to fall on the small business owner, that day fell much later for them. And this does not even count the fees that the government imposes on the taxpayers. Just a few of these fees include the water tariff, sewage payments, passport and fees fees, fees for the library, and costs for ambulances.
Being a small business in Canada, you have a lot of fees and payments that you make every year. This year, cut down one of those payments. Switch your employee health insurance over to the health savings account option. You will both save money, and be healthy and happy while doing it.