Illustrative HSA Expense Budget for a Canadian Employer

Illustration and current administration terms reviewed October 20, 2026.

An illustrative $5,000 eligible HSA reimbursement requires $5,500 of employer funding at a 10% administration rate, before applicable taxes and separate charges. This assumes an eligible employee and qualifying plan; it is a budget example, not a customer result or net tax-saving calculation.

Assumptions

Assume an employer provides a qualifying Private Health Services Plan (PHSP) and reimburses an eligible employee for $5,000.00 of documented medical expenses within the funded plan allocation. The example assumes the particular expenses qualify; treatment eligibility and any practitioner, prescription or certification requirements must be checked separately.

Where an individual is both an employee and a shareholder, the capacity in which the benefit is received matters. Business registration, a professional title or incorporation alone does not establish eligibility or the tax result.

Separate reimbursements from administration

Under the current Wellbytes Pay-As-You-Use model, administration is 10% of eligible reimbursed amounts, plus applicable taxes. Prepaid administration uses the accepted rate and annual funding amount. Current website terms do not establish a historical customer fee.

• Assumed eligible reimbursement: $5,000.00.
• Illustrative administration at 10%: $500.00.
• Reimbursement plus administration: $5,500.00, before applicable taxes and separately agreed charges.

Tax and product terms need their own checks

Use the transaction date, actual agreement, invoice, place-of-supply and provincial facts to determine applicable taxes and their bases. An Ontario charge or a provider’s address cannot establish the charges for a New Brunswick transaction. This example does not determine a tax invoice.

Employer deductibility, federal employee PHSP treatment, provincial reporting and the personal medical expense tax credit are different questions. Québec has separate provincial treatment of employer-paid private health benefits. Do not present a personal gross-up or a difference in cash outflow as proven net tax savings.

Keep a supported claim record

• Confirm eligible participants and the capacity in which benefits are received.
• Retain the plan terms, coverage period, allowance and funding records.
• Keep itemized receipts, other-plan reimbursements and any documents required for the expense category.
• Confirm fees, submission deadlines, carry-forward and reimbursement processing under the accepted agreement.
• Keep the claim decision, invoice and payment records for the applicable retention period.

Wellbytes provides administration rather than insurance. Claim review does not guarantee reimbursement, deductibility, tax savings or protection from CRA review. An HSA’s funded allocation does not establish protection equivalent to an insurance policy.

Review the Wellbytes administration and pricing terms and CRA PHSP requirements. Use the CRA medical-expense guidance for the actual treatment or supply.