HOW TO USE YOUR PERSONAL SPENDING ACCOUNT (PSA)
Your PSA is a spending account funded by your employer that you can use to pay for a range of items not covered by your group benefit plan or provincial health plan.
It focuses on overall health and wellness—everything from a fitness club membership to childcare expenses to weight loss programs may be eligible. Based on your group plan design, your employer deposits a set amount into your PSA —then how it’s spent is up to you.
Unlike your HCSA, the PSA is a taxable benefit (meaning you pay taxes on the benefits you receive, usually associated with the your employment income value) that includes a wide range of eligible benefits focused on enhancing your well-being that may include: Health Education (smoking cessation, nutritional counseling, and personal fitness), Fitness (equipment, club memberships), and Personal Services (estate planning and financial counseling).