A question we get all the time - Can I set up a WSA for an Owner?

The answer? You can, but it's better not to.

The concept of a Wellness Spending Account (WSA) has gained traction as a means of supporting employee well-being. However, the implementation of a WSA (or a myFlexplan that includes one) should be carefully considered if it's solely for an Owner or a group of Shareholders.

WSAs, similar to taxable income, are often viewed as an advantageous tool, but offering them exclusively as an owner benefit is counterintuitive.

Here's why: The rationale behind this lies in the fact that utilizing a WSA solely for owner compensation would incur administrative fees. These fees are added to approved claims for the adjudication and use of the platform, so Owners would end up paying more for a benefit that is taxable. It would make more sense to compensate owners directly for the intended amount, that way you don't incur those unnecessary administrative costs.

The intention of the WSA is as an employee benefit - contributing to a more comprehensive and inclusive package for the entire workforce. By doing so, employers can actively invest in the well-being of their employees, fostering a culture that prioritizes and supports holistic health while competing with other employers for retention.

So - the WSA is awesome - the myFlexplan is even more awesome - but these plans with taxable portions are not meant solely for Owners. Its true intention is to be positioned as an part of an employee offering.

Questions? Reach out to our Support team at support@getmyhsa.com