Olympia Benefits Health Spending Account (HSA) FAQs

1. What is a Health Spending Account (HSA)?+

 An HSA is a tax-efficient alternative to traditional health insurance. Benefits offered through an HSA are tax deductible to the business and received 100% tax-free by the employee.

2. What are eligible expenses for an HSA?+

Health-related expenses are typically covered. Some of the most frequently claimed eligible expenses include laser eye surgery, dental treatment, physiotherapy, massages, eyeglasses, and prescription drugs. You can see the full list of eligible expenses here.

3. Do I qualify for an HSA?+

You are eligible for an HSA if you:

• Own an incorporated business
• Have medical expenses
• Receive T4 income
  

4. How much do Olympia Benefits HSA plans cost?+

Olympia offers 3 HSA plans.

Two options for an incorporated individual:
HSA Basic: $249 / year
HSA Plus: $499 / year

One option for businesses with staff:
HSA Group: $335 one-time setup fee, plus $40 + tax to add employees to the plan and an 8% administration fee on claims. There is a $99 annual fee on plan renewal.

For more information on plan pricing, click here.

5. What is the difference between Olympia Benefits' HSA plans? +

The HSA Group is for a small business with staff (arm’s length employees).

The HSA Basic and Plus are for an incorporated individual and their dependents. 

6. Does Olympia have administration fees on claims?+

The HSA Group plan has an 8% administration fee on claims.

The HSA Basic and Plus do not have administration fees.

7. Does Olympia Benefits have plans for sole proprietors?+

Per CRA guidelines Olympia only offers HSA plans for incorporated businesses. 

8. Do I qualify for an HSA if I only take dividends from my business?+

It is recommended that you receive some form of T4 income. The HSA is meant to be an employee benefit, and T4 income is a reasonable way of showing your employee status. We strongly suggest discussing with your accountant or tax professional. 

9. What is the point of taking in salary for an HSA?+

An HSA is meant to be an employee benefit. In a typical small business, it is reasonable to assume that you are an employee of the business if you receive T4 income. If you only withdraw dividends from your corporation, it can be hard to discern whether you are an employee or a shareholder. That is up to the judgement of the CRA. 

10. What is the limit on an HSA?+

The claim limit for the HSA Basic and Plus is $15,000 per enrolled employee.

The claim limit for the HSA Group plan ranges from $250 - $15,000. The lowest classification limit must be no less than 10% of the highest classification allowance. The maximum benefit is $10,000, and the minimum benefit cannot be less than $1,000. 

11. Do I need a medical checkup to qualify for an HSA?+

There is no medical checkup required to sign up for Olympia HSA plans. You can sign up even if you have pre-existing conditions. HSAs are a tax product that covers medical expenses. 

12. Does Olympia offer insurance products?+

The HSA Plus contains two built-in insurance plans: travel medical insurance and emergency medical insurance.

These two insurance products can also be added to the HSA Group plan for an additional cost.

The HSA Basic has no insurance. 

13. Can I claim expenses incurred before setting up the plan?+

The effective date of our plans is the day the plan is set up. Only receipts on and after the effective date can be submitted. 

14. How far back can I claim after I set up the plan?+

Receipts on and after the effective date can be submitted. The effective is the day the plan is set up. 

15. If my claim is audited, do I get my original receipts back?+

When a claim is selected for audit, we only require a copy of the receipts for verification. It is recommended to provide Olympia with copies of your receipt, and you keep your original. 

16. Which HSA fees are deductible business expenses?+

Our HSA plans have different fee structures. All HSA fees are deductible including the initial set-up fee, employee enrollment fees, membership fees, annual fees, and the cost of employees’ claims including administration fees. 

17. How do I file the HSA fees on my company taxes?+

They are Employee Benefit Tax Deductions.

18. Can my dependants claim through my Olympia Benefits HSA?+

Yes, dependants can claim expenses through an HSA and share the account's annual limit.

Eligible dependants typically include:

- Your spouse (including common-law partner)

- Your unmarried, unemployed dependant children (including biological, adopted, and stepchildren)

To qualify, dependants must:

- Be under age 21 (age 25 if they are full-time students)

- Be claimed as dependants on your personal tax return  

19. How far can an HSA be backdated?+

The earliest any plan can be made effective is the date the application is completed and paid for online (the day you sign up).

Additional insurance products (if purchased) have varied effective dates in accordance with policy guidelines. See the plan guidelines for full details.

20. When can I close the plan?+

The employer can terminate an HSA plan at anytime. There are zero costs associated with terminating a plan.

21. Can I supplement my existing insurance plan with an Olympia Benefits HSA?+

Yes, premiums paid in any non-government medical or hospital care plan can be claimed with an HSA. This means you can make your insurance premiums tax-free.

For more information, click here.

22. Do I make a claim to my insurance plan or my HSA first (if I have both)?+

In most cases, the HSA will be the last payer. This means:

1. Submit your medical expense through your insurance plan
2. If it is not eligible, then claim with your HSA
3. Any co-pays, co-insurance, deductibles, or associated claim fees under an insurance plan can be claimed with an HSA. Be sure to supply the Explanation of Benefits document from the other insurance company.

Note: you cannot claim the same expense twice using both an HSA and insurance, only the amounts not reimbursed by insurance.

23. Why should I choose Olympia Benefits as my HSA provider?+

With more than 25 years of experience, Olympia is built around credibility, transparency, and quick reimbursements. Our digital platform makes claims quick and easy with reimbursements typically processed within 2-3 business days.

We have supported over 69,000 plan members and processed more than $1 billion dollars in claims, helping Canadian businesses provide flexible, tax-efficient health benefits with confidence.

24. When was Olympia Benefits created?+

Olympia Benefits was founded in 1997. It is a subsidiary of publicly traded Olympia Financial Group. Today, we are proud to have served over 69,000 plan members and have processed over $1 billion dollars in claims.

25. How do I sign up?+

1. Click sign up at the top right of the homepage
2. Select your plan
3. Complete your personal application form
4. Pay the annual fee using your business credit card
5. A confirmation email will be sent to your email with your Olympia account information
6. Once you log in, follow the directions to make your first claim

    

26. What is my spending limit?+

The spending limit is determined by the employer, with a maximum of $15,000 and minimum of $500 per employee. The spending limits are based on classifications. Each classification is assigned their own spending limit. Although there are no specific rules in place, spending limits between classifications should be reasonable. This ensures fairness between the employer and employees. It is suggested to maintain a maximum ratio of 10:1 between the employer and employees. The maximum benefit is $10,000 and the minimum benefit cannot be less than $1,000.

1. How does an HSA work for incorporated individuals?+

An HSA is a cost-effective and affordable alternative to traditional health insurance for an incorporated family business, consultants, contractors and the self-employed. An HSA turns your after-tax personal medical expenses into before-tax business expenses through your corporation. It lets you pay for your medical expenses with before-tax dollars. 

2. What is the HSA Basic?+

The HSA Basic plan is a standalone Health Spending Account with a $15,000 claim limit.

3. What is the HSA Plus?+

The HSA Plus plan is a Health Spending Account with two added insurance products (travel medical and emergency medical). 

4. How do I know the HSA Basic or Plus is right for me?+

You are eligible for these plans if:
- You own an incorporated business
- You pay medical expenses
- You pay income tax (T4 Income)
- You run the business by yourself or with a spouse (self-employed individuals and contractors qualify!)

5. How do I submit a claim in the HSA Basic or Plus plan?+

As an example, here is how a claim would work for a $1,000 medical expense:

1. Pay for your $1,000 medical expense from your personal account
2. Submit a claim in the online portal or through the app
3. Make a $1,000 payment to Olympia Benefits from your corporation
4. Olympia Benefits reimburses your personal bank account $1,000

The payment from your corporation to Olympia Benefits is 100% tax deductible. The reimbursement you receive from Olympia Benefits is 100% tax-free.

6. Am I paying for the medical expense twice?+

First, you must pay for the medical expense personally. For your corporation to get the tax deduction, it must fund Olympia Benefits for the expense. Olympia Benefits reimburses you personally for the full cost of the expense, and your corporation gets the tax deduction, and you receive the reimbursement tax-free. 

7. How do you fund a claim?+

Payment must be submitted electronically through the business’s online banking system (like paying a utility bill) at the time your claim is filed. Olympia’s website will direct you to the appropriate page if you are required to utilize your online banking system when your claim is being submitted. 

8. What is the maximum benefit limit?+

The maximum annual limit is $15,000 per enrolled employee, with a maximum of two (owner and spouse). This maximum claim amount is shared between you and your dependants. 

9. Can the maximum annual benefit be increased?+

Yes, your annual HSA limit can be increased. The applicable form is available to all clients through their MyOlympia portal and identifies the relevant fees associated with the increase. There is a 10% fee for every claim over the limit. 

10. Why don’t the HSA Basic or Plus plans have an administration fee?+

We have streamlined the HSA Basic and Plus plans so that our clients do not have to worry about administration fees on claims. All costs are built into the setup fee. You can claim up to the $15,000 limit per employee (maximum two employees, owner, and spouse) with no fees on claims. 

11. When does my plan renew?+

The plan year-end is one year from the effective date, less one day. The plan automatically renews on the same day each year. 

1. How does the HSA Group plan work?+

An HSA is a cost-effective and affordable alternative to traditional health insurance for businesses with arms-length employees. In this corporate structure, think of an HSA as an employee benefits plan which reimburses your employees for medical expenses with tax-free dollars. 

2. Can I sign up for the HSA Basic or Plus plan if I have arm's length employees?+

No, you cannot sign up for the HSA Basic or Plus plan if you have arm’s length employees. The digital claims platform is built according to your corporate structure. If you have arm’s length employees, sign up for the Group plan. 

3. How do I submit a claim in the HSA Group plan?+

As an example, here is how a claim would work for a $1,000 medical expense:

1. The employee pays for the $1,000 medical expense out of pocket
two. The employee submits a claim for the expense in the MyOlympia portal or app
3. Olympia Benefits takes funds (cost of the medical expense plus administration fees) from the company’s funding account to reimburse the employee directly for their claim. A direct deposit of $1,000 will be made to the employee’s personal bank account.

The $1,000 reimbursement is tax-free to the employee. The payment from your corporation is tax-deductible.

4. How much should I budget for my employee benefits? +

1.  Figure out your current health and dental plan budget
2. Add up your total liabilities (classification amount x employees in the classification for all classifications)
3. Divide the total liabilities by 12 months
4. Deposit the calculated amount into the HSA at the beginning of each month 
   
   

5. How do you fund a claim?+

The employer determines the funding amount and spending limits. Group plans are funded by the employer with a pre-set amount at the start of every month. This means that funding is held on account to satisfy any claims submitted by your employees.

We recommend allocating enough at the start of the plan so that employees can be reimbursed immediately after a successful claim.

6. How much money should I give my employees?+

The annual limit that you assign to your employees is up to you. We recommend working with your employees to see what a reasonable amount is. A typical amount is $1,000 per employee on the lowest level classification.

You can control the plan budget and choose to increase or decrease the spending limit of your employees. We can offer advice based on your employee spending after one year. 

7. As the employer, can I see what my employees are claiming? +

Employers can only see the amount of the claim that was reimbursed to them. Due to the privacy act, employers cannot see the specific items each employee claims. Our secure auditing process ensures that only claims that are eligible medical expenses are approved. 

8. How many employees can I enroll?+

There is no limit to the number of employees you can enroll. Employees can be split into classifications (Ex. Part time, Full time, and Managers) with different spending allowances (Ex. $1,000, $2,000, $5,000).

9. Do we have to include all employees in the HSA Group plan? +

You do not have to include all employees in your HSA Group plan. However, there must be reasonable conduct within the plan. This means the plan cannot include solely the shareholders. That scenario would conflict with the rules of an HSA set forth by the CRA. It would appear to be a shareholder benefit as opposed to an employee benefit. As a result, it is recommended that you include at least one class of full-time employees.

10. Can I choose which employees to cover?+

Yes, the employer can create employee classifications to include in the plan, as well as the spending limits for each employee classification (Ex. Associates, Managers, VPs, and President). 

11. How is an employee reimbursed?+

Olympia Benefits reimburses the employee directly by depositing funds into their personal bank account. All reimbursements are 100% tax-free.

12. When are benefits renewed under an HSA Group plan?+

You may choose one of the following: one year from the effective date, the company’s fiscal year end, or the calendar year end. This date is chosen during the HSA plan setup and cannot be changed later.

13. What happens to unused funds (funds that are not claimed during the plan year)?+

Olympia can return any unused funds to the employer at any time. Remember, a deposit for the HSA funding account is not the same as a premium payment to insurance. You can withdraw funding from your HSA account at any time. Any unused funds can be returned to the employer or left on account for future claims.