Health Care Spending Account & Wellness account

What is the difference between a health care spending account (HCSA) and a wellness account (WA)?

• A health care spending account* (HCSA) is a nontaxable account that can be used towards reimbursement of medical expenses not covered by your plan. Rules for what can be reimbursed are governed by the Canadian Revenue Agency (CRA).
• A wellness account (WA) is a taxable account that associates can use to cover non-medical expenses like safety shoes, gym membership, office equipment and much more.

If associates choose to have funds allocated to their wellness account, how are they taxed?

• Funds allocated to associate wellness account are taxed when they are used. Applicable taxes are added to associate’s bi-weekly payroll, so there is no action required by the associate.

How do associates get reimbursed for the wellness account or health care spending account funds?

• Associates can upload their receipt(s) for proof of payment through the Manulife plan member site via the online claims process.
• Do associates receive separate deposits for both the health care spending and wellness accounts?
• No, associates will continue to receive one annual deposit (based on the plan they are enrolled in, either core or enhanced and their status, one of single, couple or family) but will now have the option to decide where they want to allocate their annual deposit:
• Health care spending
• Wellness
• Or split the funds between the two accounts

Can an associate make a change to where their funds are allocated after the enrollment period closes?

• No, after the annual enrollment period, funds that have been deposited cannot be moved between the HSCA and WA.

HCSA

Home Depot Eligible Expenses Wellness Account

*The claims submitted to the Health Care Spending Account are not subject to taxes (except in Quebec). Claims submitted to the Wellness Spending Account will be subject to tax.