A Health Reimbursement Arrangement, or HRA, is timely and can offer substantial flexibility for your small business
Offering a small employer HRA to employees allows them to use account dollars to pay their individual healthcare premiums and to reimburse any out-of-pocket costs they or their dependents may incur.
- In , you can contribute up to [$4,950] for an individual and [$10,000] for a family.
- For employees to be eligible, they must have completed 90 days of service, be full-time employees over the age of 25, and residents of the U.S.
- Participating employees must maintain minimum essential health coverage to realize the tax advantage of the HRA, or the funds could be included as taxable income during any lapse in coverage.
- HRA funding amounts are reported on W-2s, and a Form 1095B is required.