How it Works
From personal expense to business deduction
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 signing up for a Hiveworks HSA, 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: Your Corporation Pays Us
Once your claim is approved, we invoice your corporation. You fund your claim through:
Pre-Authorized Debit
Online Bill Payment
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: We Reimburse You
Once we’ve processed your payment, you will be reimbursed for the claim amount (minus any applicable taxes). We only reimburse through direct deposit.
Along with your reimbursement, you’ll receive supporting documentation for your expense, making it easy for you to track your claims for tax or accounting purposes.
Processing Time: 1 - 2 business days
Opening Your HSA
Get started in minutes with our fully digital onboarding.
1. Personal and company details
Provide names and addresses for your corporation, the plan sponsor, and yourself, the plan member.
2. Add your spouse and 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 your annual limit and fiscal year end
Choose how much your corporation can reimburse each year (up to $15,000) and when your benefit year resets, based on your company’s fiscal year.
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 Dashboard
Submit single or multiple claims in minutes
Upload receipts one at a time or batch multiple claims together in a single session.
Get updates and track claim status
See each claim’s progress in your dashboard and get email updates when it’s received, approved, denied, or reimbursed.
Add or remove spouse and dependants
Manage who’s covered under your plan anytime from your dashboard.
Download year-end summaries
Export clean reports for your accountant with full details.
View your full claims history
Access every submitted and reimbursed claim whenever you need it.
Built-in compliance checks
The platform guides you to enter only eligible expenses and providers.
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). Every part of our HSA is structured to meet these rules from day one.
Plan structure follows PHSP guidelines
Your plan is structured between your corporation and you as the employee, with a fixed annual limit and no mid-year changes allowed.
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
You 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.
Only your corporation can fund claims
Hiveworks invoices your corporation directly. Once payment is received, we reimburse you personally. Self-payments or informal transfers are not permitted on the platform.
Your Responsibilities
Hiveworks is built to adhere to CRA PHSP rules, but a few responsibilities fall on you:
Confirm that you are a salaried (T4) employee and do not have any arm's length employees
The plan is only valid if you're actively working in your business and have no unrelated (arm’s length) employees. The clearest way to demonstrate an employer-employee relationship is by receiving T4 income from your corporation. It's also best practice to have the HSA benefit outlined in your employment contract as part of your compensation.
Set a reasonable annual limit
You can set a limit up to $15,000, but it must be reasonable in relation to your income and role. Industry guidance suggests the benefit should fall within 10-15% of your salary and be consistent with what a comparably paid employee in another corporation might receive.
If adding dependants, they must be eligible
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 my company have to pay now?
Your corporation, as the plan sponsor, must be the one reimbursing the expense, not paying it directly. You pay out-of-pocket first, then your company reimburses you, the plan member, through your company-funded HSA.
What if I don’t use my full limit in the year?
Any part of your annual limit that goes unused by year-end is forfeited. Your limit can’t be carried forward. Your HSA is not prefunded. You only fund a claim when it’s submitted and approved.
Is a Health Spending Account CRA compliant?
Yes. A Health Spending Account (HSA) is fully compliant with CRA rules when it’s set up and administered correctly. The CRA classifies this type of benefit as a Private Health Services Plan (PHSP). Your corporation acts as the plan sponsor and reimburses you, the business owner, for eligible medical expenses. As long as your plan meets CRA’s PHSP criteria and only reimburses eligible expenses, it qualifies as a tax-free benefit and a deductible business expense.
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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