Guide to Flexible Spending Accounts (FSA)

Give Your Employees the Benefits They Actually Want

As a business owner, you know your team’s needs aren’t one-size-fits-all. One employee might want to invest in their mental health and wellness, another might be focused on family dental care, and someone else might prefer to grow their retirement savings through an RRSP or TFSA.

What if you could give each employee the flexibility to choose exactly how their benefits dollars are spent—without juggling multiple rigid plans?

That’s exactly what the Flexible Spending Account (FSA) from BeniPlus delivers.

What Is a Flexible Spending Account (FSA)?

An FSA lets you give employees a pre-set annual benefits amount. They can then allocate those funds across different accounts, choosing what works best for them:

• Health Spending Account (HSA) – for eligible medical and dental expenses, tax-free
  
• Wellness Spending Account (WSA) – for fitness, mental health, personal development, and more
  
• Registered Retirement Savings Plan (RRSP) – for long-term retirement savings
  
• Tax-Free Savings Account (TFSA) – for short- or long-term savings, tax-free growth
  
  

This “mix-and-match” approach puts control in the hands of your employees. They decide what matters most, so every dollar delivers maximum value.

The Core Components of an FSA

1. Health Spending Account (HSA)

• Covers CRA-approved medical expenses like dental care, prescription drugs, vision care, and services from licensed practitioners.
  
• Funds are non-taxable, so employees pay no tax on the benefit.
  
  

2. Wellness Spending Account (WSA)

• Supports health and lifestyle goals—gym memberships, yoga classes, sports leagues, therapy sessions, even professional development courses.
  
• Funds are taxable as income, giving flexibility beyond medical needs.
  
  

3. RRSP Contributions

• Employees can direct a portion of their FSA toward retirement savings.
  
• Contributions are tax-deductible, helping them grow their nest egg faster.
  
  

4. TFSA Contributions

• Employees can save for anything—travel, a home, or an emergency fund—while enjoying tax-free growth.
  
  

How It Works for Employees

1. Welcome Email – Employees are invited to log in to their BeniPlus portal, where they see their annual benefit amount.
   
2. Learn & Choose – They get a clear breakdown of HSAs, WSAs, RRSPs, and TFSAs, including tax treatment and eligible expenses.
   
3. Allocate Funds – They decide how to split their benefits (e.g., 50% HSA, 25% WSA, 15% RRSP, 10% TFSA). The allocation is locked in for the year.
   
4. Enjoy the Benefits – They start submitting claims, investing, and using their funds right away.
   
   

Why Employers Love FSAs

• Boost Engagement – Giving employees control over their benefits increases satisfaction and loyalty.
  
• Support Total Wellbeing – Address physical health, mental health, financial security, and lifestyle needs.
  
• Simple Management – BeniPlus provides real-time reporting so you can track usage and budgets easily.
  
• Cost Control – You set the budget; employees customize the benefit.
  
• Talent Advantage – Stand out as an employer who truly invests in their people.
  
  

The Impact on Your Workplace

When employees can tailor benefits to their lives, they feel seen, valued, and supported. That leads to:

• A healthier, happier workforce
  
• Reduced absenteeism and increased productivity
  
• Stronger retention and better recruitment outcomes
  
  

Final Word
In today’s competitive job market, flexibility is no longer a perk—it’s an expectation. A Flexible Spending Account from BeniPlus turns traditional benefits on their head, letting employees choose how to invest in their health, wellness, and future.

It’s not just a benefit—it’s a better way to care for your people.