Create your HRA or QSEHRA in minutes!

For Only $79!

 

With our document drafting technology, you can create your documents from anywhere using your Android, mobile device iPhone, iPad or computer in minutes. Simply navigate to the plan design page for your HRA, QSEHRA or QSEHRA-POP, complete the plan design questions and click submit. Your plan document package will be delivered to your inbox in minutes.

***Photo is a graphical representation of product. Content is delivered via email and does not include disks, books or printed material.

Plan document packages include everything needed to establish and self-administer a plan, including:

 

  • Main Plan Document
  • Summary Plan Description
  • Prepared Employee Notices
  • QSEHRA Plan Admin’s Playbook
  • Employee's Benefit Guide
  • Administrator Support Portal
  • Employee Onboarding Portal
  • Employee Status Information Sheet
  • Employee Notice Distribution Instructions
  • Employee Enrollment Form
  • MEC Verification Form
  • Smart Receipts Expense Reporting App
  • Expense Claim Form
  • Documentation Requirements for Out of Pocket Medical Expense Claims
  • Help Sheet: How to submit a request for premium reimbursement.
  • Help Sheet: How to Submit a Claim for Employer Sponsored Coverage Premium Reimbursement
  • Acknowledgement of Tax Reporting Requirement (for spousal insurance)
  • Recurring Claim Form (for insurance premiums)
  • eTrack 2018 – expense and automatic balance tracking software

Qualified Small Employer HRA

Can a small business self-administer?

This has been the most common question since the new regulation went into effect, Jan 1, 2017. The answer is, yes. The Qualified Small Employer Health Reimbursement Arrangement was purposely designed by congress as a tool for small businesses to implement and run by themselves, saving time and money.

 

The plan can be structured by the employer for pre-tax reimbursements to eligible employees to pay for health care costs or the plan can be structured to pay the costs of health care directly. The law gives the QSEHRA an exemption from group health plan regulations, meaning the employer can pay directly for employees’ health insurance premiums outside of a sponsored group and not have to fear penalties.

 

QSEHRA Compliance Basics

 

Business Eligibility

  • Business are qualified to offer the new HRA if they have 50 or less full-time employees (equivalent FTE employees) and do not offer employer sponsored group health insurance.

Employee Eligibility

  • The Plan must be provided on the same terms to all eligible employees (Full time Permanent 30+hrs/wk). All employees of the employer must be covered by the QSEHRA, unless they have not completed 90 days of employment, are under the age of 25, are part-time or seasonal employees.

What is eligible for QSEHRA payments/Reimbursements?

  • Employer discretion, employers may allow for no restrictions, all IRS 213(d) expenses would be eligible or, an employer may limit the plan to select expenses, like insurance premiums. The employer should review receipts and other documents from the employee to verify that they are eligible for reimbursement.

Substantiation and expense verification

  • Employers must first ensure participants are eligible for tax free reimbursements by verifying they have minimum essential coverage. This can be done once per year by having employees sign a recurring coverage agreement. This way, if an employee drops coverage mid-year and continues to receive reimbursements it would be the employees’ obligation to report the reimbursements as income.
  • When it covers fewer than 50 employees and is self-administered by the employer, the employer is not required to comply with HIPAA privacy and security rules, with respect to its administration of the QSEHRA. This exception does not apply if the employer engages a third-party to administer the QSEHRA.

Maximum Contributions

  • Pro-rated for partial year coverage, the following annual maximums apply for 2018: Self-only employees: $5,050 and employees with dependents: $10,250.

Notice Requirements

  • There are multiple written notice requirements required by the law:
    • Annual written notice to eligible employees not later than 90 days before the beginning of the year (or, in the case of an employee who is not eligible to participate in the QSEHRA as of the beginning of a year, the date on which the eligible employee is first eligible to participate in the QSEHRA) containing:
      • The amount of the eligible employee’s permitted benefit for the new year.
      • A statement that the eligible employee should provide information regarding the amount of the employee’s permitted benefit to any health insurance exchange to which the employee applies for advance payment of a premium assistance tax credit.
      • A statement that, if the employee is not covered under minimum essential coverage for any month, the employee may be subject to tax under the individual mandate requirement of the Affordable Care Act, and that reimbursements from the QSEHRA may then be includible in gross income.

W-2 Reporting

  • The employer must report the total amount of permitted benefit for the year on employees’ Forms W-2.

Conclusion

 

While these plans can be self-administered, most businesses choose a third-party vendor like HRA Plan Documents to help establish the plan and provide guidance along the way. Our QSEHRA package includes all required documents and notices to compliantly establish a plan. Also included is our HRA eTrack benefit tracking software, claim and enrollment forms and step by step instructions for simple self administration of a Small Business HRA. Self-administration is not impossible, and it saves you from having to adhere to certain HIPAA rules. Let us help bring health benefits to your business with an HRA. 

Qualified Small Employer HRA Now Available

A Formal Health Benefit For Small Business

Health Reimbursement Arrangement (HRA):

 

An HRA is an arrangement set up and funded by an employer to reimburse employees for medical expenses with tax-free dollars. HRAs must comply with federal regulations but still allow for a broad array of plan designs and uses. The new Qualified Small Employer HRA, commonly reffered to as the QSEHRA are bringing these employer-funded plans back to popularity.

 

Employers may offer an HRA to augment a group health insurance benefit or may create a stand-alone plan that reimburses for individual health insurance premiums. Different from HSAs or health flexible spending accounts (FSAs), employees cannot make contributions to an HRA, the plan sponsor funds the plan. Most employers with formal reimbursement arrangements create notional, or unfunded, accounts for each participating employee and reimburse eligible medical expenses up to each employee’s HRA balance. Unused balances in an HRA typically do not roll over to the next year however, the employer has the ability to allow roll-over if desired. 

 

This type of Account Based Health Plan is gaining momentum as small businesses adopt them as a total benefit to compete for labor and larger businesses leverage them to lower insurance costs through higher deductible insurance coupled with an HRA to help employees with the out of pocket expenses. 

 

Offering health benefits attracts high-quality workers. A competitive compensation package offered to potential new hires has to meet benefits expectations. The benefits will be the deciding factor between the perfect candidates selecting your company over another. Attracting higher quality staff will increase production, attentiveness, and morale. Work environments are better when employees are healthy and ultimately contribute to a winning culture!

 

 

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Is the Single Participant HRA for you?

 

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The Step by Step Guide to setting up AND administering a QSEHRA

Have you been considering establishing an HRA for your business but don't know where to start? Perhaps you have heard about the new HRA rules Congress put in place for 2017. If you are a small business owner, this is the guide you have been waiting for.

 

Our new eBook will take you step by step through implementing and self-administering a new Qualified Small Employer Health Reimbursement arrangement. From designing your plan to administration, this guide provides a clear overview of how to implement and self-administer a QSEHRA.

Is your business an ALE?

DOWNLOAD our ALE calculator to determine your organization's applicable large employer status.

Employer's Tax Savings Calculator

A small plan with five employees and a $500 allowance can save a business $2,200 in payroll taxes, save employees $12,000 in payroll and income taxes and allow an employer a $30,000 expense deduction for employee benefits.

 

How much could your business save?

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IRS CIRCULAR 230 DISCLOSURE

 

Any tax advice contained on this website is not intended or written by the practitioner to be used, and cannot be used by any taxpayer, for the purpose of (i) avoiding penalties that may be imposed on the taxpayer, and (ii) supporting the promotion or marketing of any transactions or matters addressed herein.

 

Use of a disclaimer does not change the high degree of care and attention that we devote to our tax advice. Moreover, the inclusion of the disclaimer does not indicate that penalties could be imposed on the transaction at issue, but rather merely indicates that the advice we have provided you in such communication does not preclude the IRS from asserting penalties. Finally, the use of such a disclaimer to avoid unnecessary legal expenses is similar to the approach adopted by most tax practitioners.


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