Cost-effective Health and Dental Benefits

Incorporated Employers

Health and Dental plans are available to "bona fide" employees of corporations, who earn a salary, starting with as few as one employee. If the employee is also a shareholder, then benefits and maximums must be "reasonable", and not based on dividend income.

note: this is a Canada Revenue Agency requirement.


Non-Incorporated Employers

Health and Dental plans are available to "bona fide" employees of a non-incorporated businesses, who are "arms-length" employees. An actively employed owner can participate if benefits and maximums arranged are the same as those of the "arms-length" employees.

note: this is a Canada Revenue Agency requirement.


Carry-forward of Benefits

CRA allows only one (of two available) options to carry-forward benefits:

  • carry-forward of remaining deposits, for up to 12 months only, or
  • carry-forward of eligible expenses, for up to 12 months only.

note: Assureflex uses the second option, as it's usually most advantageous.


If the HSA provider is not collecting the applicable Ontario taxes, then the Employer must register with the Ontario Ministry of Revenue to remit the 8% Retail Sales Tax on the amount of the Claim, and the 2% Premium Tax on Claims plus Administration.

note: this is an Ontario Ministry of Revenue requirement.

HSA Tax Compliance