Client Case Study

Legal Professional at a Large Reputable Law Firm

Ontario, Canada

Incorporated Professional

Cancer Survivor
Annual Income
Over $180,000
Marginal Tax Rate
48% in Ontario

The real life story of a Wellbytes customer

Medical Need As a cancer survivor, our customer stored semen for a potential future IVF procedure. His firm offered one of the most comprehensive benefits package but even after using his insurance, he had significant out of pocket costs for the treatment.
How Wellbytes Helped As a self incorporated legal professional, he took advantage of his company structure and partnered with Wellbytes to give himself and his family a Healthcare Spending Account. He was able to save a considerable amount of money but most importantly, he was able start his family.
$27,920.99
Total Out of Pocket Expense
What were his options after submitting all he could through his insurance?
Without HSA
↓
IVF & Medical Expenses Paying out of Pocket
$27,920.99
↓
Tax Drag
At a roughly 48% marginal tax rate, paying personally requires nearly double the gross income
↓
Gross Income Required
$55,841.98
Must earn this much more to have the additional $27,920 in after-tax income
↓
The Reality
• Used highly taxed personal dollars
• No corporate deduction
• Pays almost double
• Stress and anxiety from a significant cost burden
With Wellbytes HSA
↓
Opening a Healthcare Spending Account
$27,920.99
↓
Partnering with Wellbytes
• Setup took minutes
• Linked his personal bank account
• Submitted claims for him and his spouse
• Wellbytes administered claims and setup to ensure compliance with CRA rules
• Personally reimbursed tax-free in 1 business day
↓
Total Corporate Cost
$31,288.09
Claims Reimbursed$27,920.99
Admin Fee (>$10K tier)$500.00
HST on Admin Fee$65.00
Premium Tax (2%)$568.42
CRA RST (8%)$2,233.68
Total Outflow$31,288.09
↓
The Value of Wellbytes
• Used $27,920 of pre-tax income
• 100% of the pre-tax expense was deducted through his corporation
• No payroll tax
• Benefit is personally tax free
"I was let down by my insurance coverage. I don't know how people do this without an HSA.."

The Bottom Line

Without HSA

  • $27,920.99 medical expenses
  • $55,841.98 gross income required
  • Pays almost double
  • No corporate deduction
  • Massive cost burden
Total Income Needed $55,841.98 Double the actual expense

With Wellbytes HSA

  • $27,920.99 reimbursed tax-free
  • Corporation paid $31,288.09
  • Pays with pre-taxed dollars
  • Setup and claims took minutes
  • Significant savings
Total Tax Savings $24,552.89 Kept in his pocket, not the CRA's
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