The RHSA health benefits plan is deductible as a business expense and is a tax-free benefit for your employees.
Benefits brokers don’t always consider how important health plan tax design is to the average Canadian worker and employer.
For an average Canadian worker making $50,000 per year, the tax impact of even a $1,000 wage increase is significant. A $1,000 wage increase attracts payroll taxes (CPP, EI, WSIB premiums, health premiums, holiday pay, etc.) for your company and taxes (CPP, EI, and income tax) for your employees.
The result? Your company pays over $1,000 in taxes and your employees receive approximately $630—a huge deduction. But with an RHSA health benefits account, $1,000 of extra value to your employee attracts no tax impact and provides a wage equivalent spend of $2,000 on average.
Choose RHSA and put more health benefit dollars in your employees’ pockets.