All You Need To Know About The ‘Qualified Small Employer Health Reimbursement Arrangement’

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All You Need To Know About The Qualified Small
Employer Health Reimbursement Arrangement
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• The Qualified Small Employer Health Reimbursement
  Arrangement or QSEHRA, is a new and increasingly
  popular health insurance option created back in
  December of 2016. In much the same way as HRAs,
  the QSEHRA enables business with fewer than 50
  employees to offer their workers a monthly
  allowance of tax-free money. The employees then
  opt and pay for health care which can include
  personal insurance policies and the employer
  reimburses them up to their allowance amount. In
  this way, businesses can better control their
  budget, while still giving their workers a
  meaningful benefit.
• Lets look in a little more detail at how
  QSEHRAs work

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• The allowance amount is selected by the employer
• The small business selects a monthly allowance of
  tax-free money for each employee with no minimum
  contribution requirements, the business can offer
  employees different allowances depending upon
  their family status. Last year, QSEHRA
  contribution limits enabled small businesses to
  offer single employees up to 420.83 per month,
  and employees with a family, up to 854.16 per
  month.

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• Workers can then make purchases
• Depending upon their needs, such as personal
  health insurance premiums, co-pays, deductibles
  and prescription drugs, employees are free to
  make purchases that are eligible for
  reimbursement.
• Workers must submit proof of their expenses
• Once an eligible expense has been incurred, the
  employee must submit proof of this to their
  employer by way of documents that must include a
  description of the product or service, its cost
  and the date that it was purchased.

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• The employer reviews and reimburses the expenses
• Once the worker has submitted the relevant
  documents related to their reimbursable expenses,
  the employer or third party will review them and
  reimburse them as appropriate from their monthly
  allowance.
• All reimbursements made through this type of
  arrangement, are not subjected to payroll tax for
  the employer or the employee, and reimbursements
  can be free of income tax for employees if they
  are covered by a policy that gives them minimum
  essential coverage, or MEC.

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• The QSEHRA is a sensible and effective option for
  many small businesses, since it can be
  personalized, giving employees the ability to buy
  what best fits their needs, and employers the
  ability to set their own budget. For employees
  working in multiple states, those covered by a
  spouses group policy, or those without insurance,
  the QSEHRA can be especially valuable.
• To discuss health insurance plans in greater
  detail, contact your local professional payroll
  providers, who will be able to discuss your
  options with you in further detail.

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• Apollo Payroll is one of the premier small
  business payroll companies in Miami Beach and
  Coral Gables. Apollo Payroll is dedicated to
  delivering expert advice, responsive service, and
  highly accurate payroll processing and reporting
  to ensure the success and growth of the business
  that we serve. Our services include comprehensive
  payroll service in Homestead and other cities in
  Miami-Dade County, employee background check and
  group health insurance in Miami Coral Gables.