Meet Mike

Tax Accountant in Fredericton, New Brunswick

Incorporated Solo Practice

Age: 48

Small Business Tax Specialist
Annual Income
$128,000
Marginal Tax Rate
45%

The Challenge

The Irony Mike thrived on precision, helping small businesses navigate CRA complexities. But when chronic back pain from long desk hours led to ongoing physiotherapy and medication costs, he faced his own messy out-of-pocket expenses. He had basic provincial coverage, but significant gaps remained.
The Fear As a tax professional, Mike feared CRA reassessments and reputational damage from recommending a plan that wasn't bulletproof. He was recommending tax strategies to others while facing his own compliance concerns. A peer's success story finally introduced him to HSAs.
18
Claims Submitted
15
Claims Approved
$10,000
Total Approved
How should Mike pay for his healthcare expenses?
Without HSA
↓
Healthcare Expenses
$10,000
Physiotherapy and medication for chronic back pain
↓
Tax Drag
At 45% marginal rate, paying personally requires significantly more gross income
↓
Pre-Tax Income Required
$18,182
Must earn this much to have $10,000 after tax
↓
The Reality
• Uses after-tax personal dollars
• No corporate deduction
• Loses $8,182 to tax
• CRA compliance concerns
"I'm recommending tax strategies to clients while facing my own messy expenses."
With Wellbytes HSA
↓
Same Healthcare Expenses
$10,000
18 claims submitted, 15 approved through compliant HSA process
↓
Seamless Wellbytes Setup
• Downloaded the app
• Registration in minutes
• Connected bank account
• Submitted claims without plan sponsor
• CRA-compliant documentation
↓
Total Corporate Cost
$11,402.50
Claims Reimbursed$10,000.00
Admin Fee ($5K-$10K tier)$350.00
HST on Admin Fee$45.50
Premium Tax (2%)$207.00
CRA RST (8%)$800.00
Total Outflow$11,402.50
↓
The Win
• Receives $10,000 tax-free
• 100% deductible business expense
• Bulletproof CRA compliance
• Professional reputation protected
"Concern turned into confidence - the easiest tax win I've had."

The Bottom Line

Without HSA

  • $10,000 healthcare expenses
  • $18,182 pre-tax income required
  • $8,182 lost to tax
  • No corporate deduction
  • Compliance concerns
Total Income Needed $18,182 Almost double the expense

With Wellbytes HSA

  • $10,000 reimbursed tax-free
  • Corporation paid $11,402.50
  • Fully deductible expense
  • CRA-compliant process
  • Setup took minutes
Total Tax Savings $6,779.50 Kept in Mike's pocket, not the CRA's
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