A Health Spending Account (HSA) can be used by an incorporated individual to cover the owner and dependants. Alternatively, the HSA can be used to offer tax free health benefits to employees of a corporation.
“Incorporated Individual” is an HSA for an incorporated individual such as a contractor, consultant, doctor, or other professional. In this instance, the corporation has no “arm’s length employees”. The HSA will be established for the corporation, the owner, and dependants.
"Business with Staff" is an HSA for a corporation with "arm's length employees". In this instance, the HSA is used to provide health and dental benefits to staff members and their dependants.
In both cases the HSA can be viewed as a viable and cost effective alternative to traditional health and dental insurance.