Health Spending Accounts in Ontario: Set up a Corporate HSA

If you're an incorporated professional or business owner in Ontario, a Health Spending Account (HSA) is one of the most efficient ways to have your corporation reimburse you for personal medical expenses.

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Hiveworks makes it simple to get started.

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What Is a Health Spending Account?

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An HSA is a CRA compliant way to enable your corporation to reimburse you for eligible medical expenses. It’s 100% tax-free to you and fully tax-deductible to your business.

You pay for a health expense personally, submit your claim to Hiveworks, and your corporation reimburses you. That’s it. The process is digital, fast, and completely compliant.

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To understand the basics, see our What is a Health Spending Account page.

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Why Ontario Business Owners Use HSAs

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Ontario has some of the highest marginal tax rates in Canada. Paying for health, dental, or vision costs with after-tax dollars adds up fast.

Example:

If you're earning $150,000 annually and have $5,000 in health expenses, you could save you over $3,000 by using an HSA.

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Run your numbers with our HSA Savings Calculator.

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What’s Covered Under an HSA?

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More than 50 types of licensed health practitioners are eligible, from dentists to physiotherapists, optometrists to naturopaths.

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Some examples include:

• Dentists
• Optometrists
• Psychologists
• Chiropractors
• Massage therapists
• Acupuncturists
• Dieticians
• Naturopathic doctors

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If the service is performed by a licensed practitioner and qualifies under CRA’s Medical Expense Tax Credit (METC), it’s eligible through your HSA.

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Over 100 medical related expenses are also covered.
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‍Some examples include:

• Dental care (cleanings, fillings, braces)
• Eye exams, glasses, contacts, laser eye surgery
• Prescription medications
• Orthotics and orthopedic footwear
• Group benefits premiums

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Explore the full list in our Eligible Expenses Guide.

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Example HSA Claim in Ontario

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Let’s say you visit the dentist and submit a $200 claim through your Hiveworks Health Spending Account.

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Here’s exactly what happens:

• You pay $200 out of pocket and submit your receipt through Hiveworks
• Hiveworks reviews and approves your claim
• Your corporation is invoiced for the claim amount plus applicable Ontario taxes (8% RST + 2% Insurance Premium Tax)
• You’re reimbursed the full $200, tax-free

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Ontario Taxes on HSA Claims

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In Ontario, provincial taxes apply to all Health Spending Account reimbursements because they’re considered insured health benefits.

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Here’s what your corporation pays:

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• The out-of-pocket amount you spent: $200

• 8% Retail Sales Tax (RST) on the claim amount: $16
• 2% Insurance Premium Tax on the claim amount: $4

Total invoiced: $220

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These taxes are required by the province and apply to all HSA providers. Your corporation deducts the full $220 as a business expense, and you keep the full $200, tax-free.

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See How HSAs Work for the full process.

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Built for Ontario Corporations

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Hiveworks is built for incorporated individuals across Ontario who want an affordable, compliant way to manage personal medical costs.

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Our platform makes it easy to:

• Set your own annual limit (up to $15,000)
• Add your spouse and dependants
• Submit multiple claims at once
• Get reimbursed through direct deposit
• Download reports at tax time

Everything is handled securely and online. No paperwork. No per-claim fees. One annual price.
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Already Have Group or Spousal Benefits? Your HSA Still Helps

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Many group or spousal benefit plans only cover a portion of eligible health expenses. They also come with caps, exclusions, and co-pays.

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An HSA lets your corporation reimburse you for what’s not covered:

• The portion of dental, vision, or therapy costs left unpaid
• Expenses that exceed your plan’s annual maximums
• Services excluded entirely by your plan (like braces, laser eye surgery, orthotics, or acupuncture)

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Learn more about Combining an HSA with Group Benefits or Spousal Benefits and HSAs.

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Transparent Pricing. No Monthly Fees.

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With Hiveworks, you pay one simple fee: $249 per year, with no per-claim admin charges.

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Claim up to $15,000 per year, and include your spouse and dependants at no extra cost.

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There are no monthly fees, no tiered plans, and no hidden costs.
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Just simple, transparent pricing.

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See our HSA Pricing for Ontario tax notes and plan details.

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Get Started

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You can only claim expenses incurred after your HSA start date, so don’t wait.

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Incorporated business owners across Ontario are already using Hiveworks to keep more of their income.

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Open an HSA in Minutes or Contact Us if you have questions.

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You can also explore more in our FAQs, or learn about Why Hiveworks.