How Small Businesses Can Provide Benefits to Their Employees

Medical insurance canada

Though the vast majority of health care expenditures in Canada are covered by the government, CRA health spending accounts can make up the difference. The primary attraction of a health spending account is that it actually works to cover 100 percent of out of pocket health care costs for employees with 100 percent pre-taxed dollars.

Interestingly, about 30 percent of all Canadian health expenditures come from private sources. CRA health spending accounts are among the top small business health benefits, as they can cover the extra costs not covered by the funding through income taxes. On that note, most pharmaceutical medications are covered by public funds for the elderly and indigent, but not everyone.

At the end of the day, about 98 percent of Canadian businesses are made up of small businesses with between two and 100 employees. Though the vast majority of Canadian businesses are concerned about the cost per employee of employee benefit plans, implementing a CRA health spending account can make employee benefit plans a reality because they are affordable. Plus, it is among the best tax saving tips for businesses as well. This is a great source for more.

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