New rules, beginning in 2020, expand the use of HRA’s (Health Reimbursement Arrangement)– for both small and large employers!
As a result of the 21st Century Cures Act of 2016, businesses with fewer than 50 employees may establish a QSEHRA, otherwise known as Qualified Small Employer Health Reimbursement Arrangements. A QSEHRA allows businesses who do not offer a group health plan, the ability to reimburse employees, tax-free, for some or all of the costs of purchasing health insurance through the individual marketplace. Read more about the regulations and details here.
If you are a small business and have questions pertaining to QSEHRA and how it may impact you, please consult with one the tax experts at FRSCPA.