Health Spending Account - What Is An HSA?

What Is An HSA?

Health Spending Accounts are specified maximum Annual Allocations of funds exclusively for the purpose of health care spending. In some Health Spending Accounts, the company makes advance payments (incl. Administration Fees and Taxes) on behalf of Employees, for Health and/or Dental expenses. In other Health Spending Accounts, payments can be made on an "pay as you go" basis.

Eligible Claims are reimbursed to the Employee (must be a bona fide employee and not just a shareholder or unincorporated owner), and are non-taxable benefits for the Employee. Expenses (Claims, Administration Fees and Taxes) are a 100% business deduction for the Employer.