Small Business Health Reimbursement Arrangement (HRA)

Ready to learn more?

Complete Payroll Solutions manages both the new Qualified Small Employer HRA as well as traditional HRAs and can help you implement a plan, process claims and comply with all reporting requirements.

Contact us today to learn how easy it is to start offering this affordable benefit package.

Don't wait! Fill out this form and download a sample HRA notice template and learn even more about qualified small employer HRA basics today.

How it Works

Only employers with less than 50 full-time employees are eligible to offer the New HRA plans. The plan enables employers to offer tax-advantaged health reimbursement arrangements that employees can use to pay for qualified medical expenses, including health insurance premiums.

  • The company cannot offer a separate group health plan, and it must make the reimbursement available on the same terms to all employees, although it can vary the amount the reimbursement based on the employee’s age and family size.
  • Only an employer may contribute to the New HRA; employee contributions are not allowed.
  • The maximum reimbursement employers can provide under the plan is $4,950 for individual insurance, and $10,000 for a family plan.
  • The employer must verify the employee has health insurance before issuing any reimbursements from the HRA.
  • Employees may use HRA funds to pay qualifying medical expenses, including health insurance premiums.
  • Written notice must be provided to qualifying employees 90 days prior to the start of each plan year. This notice must indicate the amount of the benefit, stating that the employee must inform the ACA Marketplace of the plan amount, and advising that failure to maintain qualifying health insurance coverage throughout the plan year will result in the standard ACA penalty plus cause all reimbursements from the plan to be taxable income.
  • The amount of available HRA funds must be reported on the employee’s W-2 at the end of the year.
Let us Help You Explore the New HRA for your Business

If you are interested in implementing a QSEHRA plan, we can help. At Complete Payroll Solutions, our QSEHRA solution services include:

  • Documentation requirements (employers must have an official plan document in place)
  • Reporting requirements
  • Claims processing
  • Compliance requirements
We help you with all the steps you need to take to get started with a QSEHRA Plan
  • Determine your contribution amount
  • Develop a written plan document
  • Prepare a notice for employees regarding coverage
  • Provide the notice to all eligible members of your team, and then provide it to all new hires
  • Require that participating employees provide you with proof of insurance coverage
Talk to an Expert

No automated voice queues or long wait times here. Get a benefits expert on the phone to answer your questions and steer you in the right direction. Give us a call at 866.658.8800.

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