How it Works
Turn personal expenses into business deductions
Hiveworks simplifies the process - just four steps to reimburse yourself tax-free.
Here's how it works:
Step 1: Pay for Your Healthcare Expenses
After your Hiveworks HSA is set up, continue paying for your medical or dental expenses as you normally would using personal funds.
This could include doctor visits, dental treatments, prescriptions, vision care, or any other eligible medical expense. If you have group health benefits, you can claim the portion not covered by your plan as well.
Step 2: Submit Your Claim
Once you’ve paid for your medical expense, submit a claim through the Hiveworks platform:
Upload your receipt: Take a clear picture of your receipt or invoice and upload it directly to the platform.
Fill out the simple claim form: Enter basic details about the expense, such as the date, type of service, and the amount paid.
Processing Time: 1 business day
Step 3: Business Funds the Claim
Once a claim is approved, Hiveworks issues an invoice to the business for the total amount. You fund your claim through:
Pre-Authorized Debit
Online Bill Payment (Incorporated individuals only)
Claim amount: The exact amount of the eligible expense.
Applicable taxes: In certain provinces, taxes apply depending on the nature of the expense.
Step 4: Reimbursement Issued
After payment is received, Hiveworks reimburses the approved claim amount by direct deposit.
The reimbursement goes to the employee or owner who paid the expense, and full records are available in the platform for accounting purposes
Processing Time: 1 business day
Opening Your HSA
Get started in minutes with our fully digital onboarding.
1. Business and Particiapnt Details
Enter your business information and create your plan profile. Add yourself or your employees as participants.
2. Add eligible dependents
Include any family members you’d like covered under your plan. Your spouse and children are eligible as long as they meet our dependants criteria.
3. Set annual limit and fiscal year end
Decide how much your business will reimburse each participant per year (up to $15,000) and align your plan with your fiscal year. Businesses with employees also define classes to keep limits consistent by role.
4. Payment Setup
Connect your business bank account through Pre-Authorized Debit (PAD) to fund approved claims automatically.
Only expenses incurred after your plan’s start date can be reimbursed so don't delay
Need to discuss with your accountant? Share this guide with them.
Hiveworks Platform
Submit Claims in 60 Seconds
Submit individual or multiple claims at once. It takes less than a minute, and reimbursements arrive in days.
Smart Claim Validation
Every claim is guided to meet CRA eligibility for expenses and practitioners.
Real-Time Claim Tracking
See each claim’s progress in your dashboard and get email updates when it’s received, approved, denied, or reimbursed.
Manage Coverage
Add or remove employees, spouses, or dependants anytime with a few clicks.
Define Annual Limits
Set or adjust annual limits for yourself or by employee class, keeping benefits predictable and fair.
Smart Reporting and Spend Tracking
Every claim and payment is recorded in real time, so you can see total spending for your business, download summaries, and share clean reports with your accountant at year-end.
How Hiveworks Ensures CRA Compliance
Hiveworks follows the CRA’s requirements for Health Spending Accounts, which are considered a type of Private Health Services Plan (PHSP). Whether you’re an incorporated individual or a business with employees, every part of our HSA is structured to meet these rules from day one.
Plan structure follows PHSP guidelines
Each plan is a formal arrangement between the business and its employees, including the owner. Annual limits are defined in advance and cannot be changed mid-year.
Eligibility checks follow METC rules
Hiveworks limits reimbursements to expenses that are eligible under the CRA’s Medical Expense Tax Credit (METC). These include medical, dental, vision, mental health, prescription drugs, and other qualified healthcare services. Only expenses from the Eligible medical expenses and Eligible medical practitioners CRA guides are permitted.
Reimbursement only after actual expense
Participants must pay out-of-pocket first and submit a dated receipt. Hiveworks verifies that a real financial loss or liability has occurred before reimbursing you, a core requirement for PHSP compliance.
Employer-funded payments only
Claims are always funded directly by the business. Hiveworks invoices the business, and once payment is received, reimburses the employee or owner personally. Self-payments or informal transfers are not permitted on the platform.
Digital oversight and recordkeeping
All claims, invoices, and reimbursements are securely stored in your Hiveworks account. Each record is time-stamped and organized automatically, giving you and your accountant a clear, auditable history of every transaction at year-end.
Your Responsibilities
Hiveworks manages setup, compliance checks, and reimbursements, but a few responsibilities rest with the business.
Confirm that all plan participants receive T4 income
Each person covered under the plan must receive T4 income from the business to establish a valid employer–employee relationship. For incorporated individuals, this applies to the owner and any family members employed in the business, with no arm’s-length employees allowed. For businesses with teams, the plan must include at least one arm’s-length employee. It’s also best practice to include the HSA benefit in employment agreements as part of compensation.
Set reasonable annual limits
The annual reimbursement limit should align with each participant’s role and compensation level, up to a maximum of $15,000. A common guideline is 10-15% of salary and be consistent with what a comparably paid employee in another corporation might receive.
Dependants must meet eligibility criteria
Defined as as your spouse (married or common-law) and your children if they’re under 21, under 25 and in full-time post-secondary school, or any age if they have a qualifying disability. All dependants must live with you in your primary household.
FAQs
More Questions? See our FAQ section or Contact Us.
Can I submit expenses from before I signed up?
No. Your Hiveworks HSA only covers expenses incurred on or after your plan's effective date, which is the day you sign up. Anything dated before that isn’t eligible for reimbursement under CRA guidelines.
If you had HSA coverage with another provider and are switching to Hiveworks, contact us. We’ll help ensure there’s no gap in your coverage.
Why does the business pay after claim approval?
Claims must be reimbursed by the business, not paid directly. Participants pay out-of-pocket first, Hiveworks reviews and approves the claim, then invoices the business to fund it. Once payment is received, we reimburse the participant by direct deposit.
Who can be covered under the plan?
Coverage can include employees, a spouse or common-law partner, and eligible dependants (children under 21, students under 25 in full-time study, or any dependant with a qualifying disability living in the same household).
Is a Health Spending Account CRA compliant?
Yes. A Health Spending Account (HSA) qualifies as a Private Health Services Plan (PHSP) when set up correctly. Your business acts as the plan sponsor and reimburses employees for eligible medical expenses. As long as the plan follows CRA PHSP criteria and only reimburses eligible costs, reimbursements are tax free and fully deductible to the business.
How do I share this with my accountant?
Simple. Just send them this technical guide. It covers how the Hiveworks HSA works and how it complies with CRA eligibility rules.
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