on 2023 Oct 04 5:08 PM
Hello Experts,
I’m working on one of the Benefits requirements Flexible Spending Account - Canada
Current contribution Allocation
Every eligible employee may allocate a fixed percentage of their annual salary, equivalent to 1.5%, to one
of the available options: Health Spending Account, Life Wellness Spending Account, or Employer Paid RRSP. Employees may choose one option for the entire allocation or split it among multiple accounts as they see fit.
Example:
An employee has a salary of $100,000 per annum. An allocation of 1.5% of the annual salary is $1,500.
Employee FSA allocation is $1,500. They can allocate between HCSA, LWSA, and/or Employer RRSP.
Option 1:
Employees may choose one option for the entire allocation.
Option 2
An employee may choose 50% to HCSA (Insurance Plan), and 50% to RRSP (Pension Plan)
Therefore, $750 to HSA and $750 to RRSP.
Option 3
Or another example would, and employee may choose.
25% HCSA, 25% LWSA, and 50% RRSP
Therefore,
$1,500 x 0.25 = $375 allocation to HAS
$1,500 x 0.25 = $375 allocation to LWSA
$1,500 x 0.50 = $750 allocation to RRSP (Employer contribution)
Total = $1,500
As HSA, LWSA will be Benefit Type Insurance and RRSP Benefit Type Savings Plan/Pension. Benefit Program is not supported for Benefit Type Insurance, and it only supports Allowances and Reimbursements.
FSA is not a new concept in Canada, may I request as to how the above requirement can be achieved, where an employee will have the options to distribute his/her eligibility amount in three different buckets – LFSA, HSA and RRSP.
Thank you.
Request clarification before answering.
Hi Shilpa,
Were you able to achieve this business requirement in SuccessFactors? could you please share the details here as we have also got the same requirement from our Canada client.
Thanks!
John
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