Tim Kane’s Post

View profile for Tim Kane

Chief Executive Officer at myHSA Ltd./myHRA Inc.

Is a one person incorporated business required to have T4 to have an HSA? In April of 2019 there was a bulletin from CRA stating 2 major points of clarification and questions that are asked daily by #advisors Sole proprietors (unincorporated) cannot have an HSA, and that Incorporated business owners are required to have T4 income to have an HSA. In comparing the original PDF document with the document online it appears the document which is referenced by many has been altered by CRA. The new one (like any other document in CRAs states no where that the incorporated business owners have a requirement to have T4 income. #businessowners #accounting #smallbusiness #Healthspending #HSA #employeebenefits myHSA Steven McEwan, CEBS, ISCEBS FellowAllison G. Here is the new one https://lnkd.in/gG8Gpy8 Here is the original

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Richard V.

Delivering Customized Employee Benefits & Retirement Plans for Enhanced Employee Retention & Thriving Workplace Culture

3y

In my discussions with accountants over HSA?HCSA insist on T4 income, I remind them that its not required as long as there is a true employee/employer relationship. The other issue I have come across is dollar amounts, many accountants tell me it can not exceed 20% of income. I ask them to show me where this limitation of 20% comes from and they cannot produce it, but they believe it.

Robert McGuire, BPHA

Employee Benefits Specialist | InsurTech Advocate | Collaborator & Strategic Partner to SMEs

3y

Thanks for sharing and keeping us up to date...

Erica Reid

Group Benefits & Group Savings

3y

Looks pretty straightforward: If you're employed by your corporation you're eligible for a PHSP, and if not incorporated, then you need arm's length employees in order to be eligible. I wonder why this bulletin doesn't say anything about including/excluding non-shareholder employees. CRA could do a bit better communicating all the requirements.

Ian Keith, CEBS

Independent Broker for Benefit & Pension Plans

3y

Nice catch!

Steven McEwan, CEBS

COO and Co-Founder of myHSA

3y

I am so confused and amazed that this has changed! Hard thing is to catch when they update these things as it is crazy we all updated our operations based on original message and then quietly gets updates. Now, I still think T4 clearly makes an employer = employee connection and is better to have but interesting nonetheless.

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