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.