HSA Setup Checklist for Incorporated Owners

Setting up a Health Spending Account doesn't have to be complicated, but a few details matter — especially whether your plan qualifies as a PHSP under CRA rules. Use this checklist to get organized before you start, and to talk through the specifics with an advisor and your accountant.

Before You Start: Confirm the Basics

• Confirm your business is incorporated and operating in a province other than Quebec.
• Have your Articles of Incorporation on hand — your corporation's proof of registration.
• Note who the owners and any employees are (an HSA generally needs a genuine employer-employee relationship).
• Book a quick call with your accountant to confirm an HSA fits your corporate structure.
• Clarify your goal: replacing a plan, adding to one, or covering medical/dental more flexibly.
• Gather a rough sense of your recent out-of-pocket medical and dental spending.

Check That It Qualifies as a PHSP

• Understand that the tax treatment depends on your plan qualifying as a Private Health Services Plan under CRA rules.
• Review which expenses generally count — most items that qualify as CRA medical expenses (see [CRA medical expenses](internal-reference)).
• Confirm reimbursements are for eligible medical and dental costs, not general spending.
• Ask your accountant how amounts are generally deductible to the corporation and treated for you.
• Avoid assuming a specific tax saving — the outcome depends on your situation; confirm it with your accountant.
• Keep in mind rules can change; verify current requirements before you finalize.

Design Your Plan

• Decide who is covered — owner only, owner and family, or employees too.
• Set an annual reimbursement amount per person or class that matches expected spending.
• Consider whether to group employees into classes with different limits.
• Compare an HSA against your current or a traditional group plan — an honest look at cost and coverage, since neither is automatically cheaper.
• Decide whether the HSA will stand alone or pair with an existing benefits plan.
• Talk through trade-offs with an independent advisor before locking in the design.

Set Up and Fund the Account

• Open your account through the myHSA administration platform with advisor guidance.
• Choose a funding approach that suits your cash flow (a standalone HSA is self-funded, with no monthly premiums).
• Confirm how and when the corporation will fund claims as they come in.
• Set your plan start date and note any claim eligibility windows.
• Save your plan documents and login details somewhere secure.
• Brief anyone covered on how to submit claims and what's eligible.

Stay Organized and Compliant

• Keep receipts and claim records for anyone covered under the plan.
• Track your annual limits so spending stays within your plan design.
• Review coverage yearly and adjust limits or classes as your business changes.
• Revisit the plan with your accountant at tax time to keep records clean.
• Reach out to your advisor if your ownership, payroll, or structure changes.
• Book a free 15-minute HSA consult or request an HSA cost comparison — call +1 (780) 977-3155 or email alfredo@aitrustadvisory.ca.