Flexible Spending Account

The Flexible Spending Account (FSA) program is available to eligible MaPS who are participating in the flexible benefits program. FSAs enhance the value of your benefit plan by providing greater flexibility for you to manage your health related expenses.

As a new hire or during re-enrolment, MaPS are provided with Flex Credits and have the opportunity to choose Flex Options. You will use your Flex Credits to pay the applicable price tags for the Health and Dental options you elect. 

If you have excess Flex Credits remaining after you have made your Health and Dental choices, you can allocate these to a Flexible Spending Account. There are two types of FSAs - a non-taxable Health Spending Account (HSA) and a taxable Wellness Spending Account (WSA) - and you can allocate excess credits to either account or a portion to both. If you do not allocate your excess credits, they will automatically default to the HSA. 

You may claim eligible expenses from the account where you have allocated credits throughout the benefit year. The value of your account depends on your Flex Option choices.

Once you have chosen your Health and Dental Options during initial enrolment or re-enrolment, any excess Flex Credits available must be allocated to a HSA or WSA. Flex option choices and credit allocations are locked in for the duration of the two-year period but your HSA or WSA credits are refreshed each Jan. 1. The only exception to this is when an employee experiences a qualified Life Event that impacts credits.

The Spending Accounts operate on a credit carry forward basis. Unused Flex Credits may be carried forward for one year after the year in which the credits are allocated. At the end of the second year, unused credits are forfeited. For example, FSA credits deposited on Jan. 1, 2022 and not used by Dec. 31, 2023, will be forfeited. Claims must be submitted in the year they are incurred.

If the Health and Dental options selected cost more than your Flex Credits, you will be responsible to pay the difference through regular payroll deductions and will not have a FSA.

FSA Benefit Year

January 1 – December 31

Claim Forms

You may submit claims electronically through your Alberta Blue Cross account, or using these forms.

• Health Spending Account Claim Form
• Wellness Spending Account Claim Form

Taxation Update

We would like to inform you of changes pertaining to tax reporting for your Wellness Spending Account (WSA) claims. WSA claims are a taxable benefit that must be reported on your income tax return. For more information see the FAQ. 

2021 tax year - at the beginning of 2022, Alberta Blue Cross will issue a T4A to individuals making Wellness Spending Account (WSA) claims in 2021.

2022 tax year - for the 2022 tax year the university will take over the WSA tax reporting from Alberta Blue Cross. WSA claims reimbursed by Alberta Blue Cross with a paid date on or after January 1, 2022 will be reported to the university payroll department. The value of WSA claims paid between January 1, 2022 and December 31, 2022 will be included as a taxable benefit on the year-end tax slip.

2023 tax year - beginning in 2023, we will move to monthly reporting of WSA claims and appropriate tax deductions will be applied to your pay as claims are reported. As a taxable benefit WSA claims are subject to CPP, EI and income tax in the period that it is reported. The taxed amount will have a direct impact on your net pay. A reminder of this will be sent out during the annual Flexible Spending Account allocation period.

Below are examples of how a taxable benefit affects your net pay. Net pay is variable depending on whether CPP and EI maximum deductions have been reached as well as and on other deductions (e.g., parking).

Example #1*: For an annual salary of $45,942, net pay after income tax, CPP and EI is about $1,308. For an $850 WSA claim, your net pay will reduce by $292 to $1,016. For a $1,700 WSA claim, your net pay will decrease by $606 to about $702.

Example #2*: For an annual salary of $74,279, net pay after income tax, CPP and EI is about $1,632. For an $850 WSA claim, your net pay will reduce by $383 to $1,249. For a $1,700 WSA claim, your net pay will decrease by $776 to about $856.

Example #3*: For an annual salary of $83,811, net pay after income tax, CPP and EI is about $2,093. For an $850 WSA claim, your net pay will reduce by about $321 to $1,772. For a $1,700 WSA claim, your net pay will decrease by $675 to about $1,418.

Example #4*: For an annual salary of $106,454, net pay after income tax, CPP and EI is about $2,606. For an $850 WSA claim, your net pay will reduce by about $351 to $2,254. For a $1,700 WSA claim, your net pay will decrease by $722 to about $1,884.

*These examples are approximations for illustrative purposes and based on 2022 tax rates.

This change applies only to WSA claims and not Health Spending Account, Extended Health Care or Dental claims. The claims reimbursement process will not change and your claims will continue to be paid by Alberta Blue Cross.

COVID-19 Tests

COVID testing has been approved as an eligible expense under CRA claiming guidelines and has been added as an eligible expense under the HSA and WSA accounts. The coverage allows for:

• travel related test (PCR and other molecular tests),
• non-travel tests (PCR and other molecular tests,
• rapid testing kits. 

The coverage under the HSA requires a physician’s written order (PWO). A PWO is not required for every test but rather one PWO will be kept on file for 1 year. If no PWO has been attained, the member can submit these same tests under the WSA, Health Benefit category. For more information contact Alberta Blue Cross or read the FAQ.

Wellness Spending Account - Work From Home Category

A 'Work from Home' product category has been added to the employee taxable Wellness Spending Account retroactive to July 1, 2020. This category includes items to enhance employee wellness while working from home including office supplies, a desk chair, desk, web cameras, shredders, ergonomic equipment and devices. Any expenses you may have that qualify under this category can be submitted under your taxable wellness spending account.