Does the WSA allowance add to an employee's taxable income?
Yes, it is important to note WSA allowances are taxable for the employee, meaning WSA funds used by an employee contribute to their yearly taxable income (T4). Unused dollars in a WSA plan do not add to an employee’s taxable income. As the Benefit Coordinator, you will have access to our real time reports that will assist you in the proper taxation for each employee on their payroll. It is important to note that Olympia Benefits does not interact with any payroll information for the business. Reports are provided for the businesses Payroll and Human Resources department.