Wellness Spending Account

A flexible way for businesses to reimburse wellness and lifestyle expenses

What is a Wellness Spending Account?

A Wellness Spending Account (WSA) is an employer-funded benefit used to reimburse wellness and lifestyle expenses.

The employer sets an annual limit, and reimbursements are based on actual expenses incurred rather than insurance premiums.

WSAs allow businesses to support employee wellness through a broader range of activities and services. Because these expenses fall outside traditional medical and dental coverage, reimbursements are generally treated as a taxable benefit to the employee.

COSMETIC & PERSONAL CARE

  • Cosmetic dentistry

  • Cosmetic dermatology

  • Skincare & Beauty services/supplies

ALTERNATIVE MEDICINE / WELLNESS

  • Holistic medicine or practitioner

  • Nutrition coaching

  • Vitamins & Supplements

FAMILY AND CARE SERVICES

  • Child daycare services

  • Cleaning services

  • Elder care

FITNESS

  • Gym memberships

  • Personal training

  • Fitness equipment

SPORTS & RECREATION

  • Sporting equipment

  • Camping and outdoor equipment

  • Yoga and Pilates classes

ERGONOMIC WORKSPACE

  • Ergonomic chairs

  • Standing desks

  • Ergonomic keyboards or accessories

Examples of Wellness Expenses

HSA vs WSA: Key Differences

FEATURE


Health/Dental


Wellness


Tax
Treatment

HSA








Tax
free

WSA








Taxable
benefit

*This comparison is a simplified overview. Actual tax treatment may vary depending on plan design and applicable tax rules.

Curious whether a Health or Wellness Spending Account could work for your business?

This resource was created by Jeffrey Mok, a licensed insurance advisor based in British Columbia.
He works with business owners on employee benefits and insurance planning, with a focus on Health Spending Accounts.