David Imrie

 Tags: small business

Providing high-quality health and dental coverage to your employees is an absolute essential element of being a competitive and well-regarded employer. You may currently have a benefit plan with a traditional insurance companies or you may be looking into providing coverage for the first time. Whatever stage you are in, it is important to consider all the options. 

Download our free guide on all the health benefits your employees need and  want.


If you aren't sure if a health savings account is for you, read on and learn more about how an RHSA can work for your small business

What Is a Health Savings Account?

A health savings account is a tax-free, comprehensive alternative to traditional insurance plans. Employers pay a set premium for the health, dental, and wellness insurance for their employees. Instead of covering only part of expenses or certain ones, a health savings account can be used to cover 100% of all CRA-eligible medical expenses. Although we focus on business health spending accounts, families and individuals are also eligible.

You’re Eligible

For incorporated businesses in Canada, both the employer and employees are eligible for the benefits. It is important to note that the health savings account cannot only be allocated towards owners and/or shareholders—it must be in place to benefit employers. If your business is unincorporated, the employer and employees are eligible, but note that at least one employee must not be related to the owner. 


Your business is eligible no matter the size of your staff. You can open a health savings account in Canada for your small business with even only one employee who is eligible for benefits. 

Premiums? No Way!

The amount you pay for your health savings account in Canada will be determined by the amount that you choose to allocate per employee. This means that you cost per employee remains the same whether you have 10 or 100 employees enrolled in your health benefits program. This differs from traditional insurance in many ways. Lower premiums are often offered as employers add more employees to their benefit plan, meaning that small businesses are stuck paying higher fees for the same coverage. 


Since you are in charge of the amount allocated per employee, you don't have to worry about unexpected premium increases. You determine any changes made to what you pay! With premiums consistently rising beyond the rate of inflation, this can result in huge savings for your business. 

Save on Tax!

All of the money that you invest into your health savings account in Canada for your small business is taken from your gross income, meaning that you don't have to pay taxes on the money first!.


In addition to using tax-free money to support your health savings account, the expenses from the account are entirely tax-deductible, meaning that you are getting a tax break on both ends!

No Category Caps or Restrictions!

As a small business, it can be hard to offer lavish perks to your employees, especially when compared to large corporations. Fortunately, the flexibility of a health spending account is an excellent addition to your employee incentive package. A survey by Monster demonstrated that job seekers rate good health insurance as of high importance than their next pay raise. A health savings account can give you a push ahead of the competition while also saving you money.

What Are You Waiting for?

You can get started on a health savings account pretty simply for your business. All you need to do is read up and apply. We will take care of the rest. 


Canada's Best Small Business Tax Tip

David Imrie

Dr. David Imrie founded RHSA Canada in 2009. Dr. Imrie is a medical doctor and former health insurance professional who has a passion for helping small businesses reduce their healthcare costs. As an executive in the insurance industry, he was shocked to find that so many common healthcare services are covered only partially by most insured plans, when employees were entitled to 100% coverage for all prescription drugs, dental services, and other healthcare expenses. Since leaving the insurance industry in 2001, Dr. Imrie committed to using newer technology to develop a better alternative program for small business health benefits.
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