By Congress passed the 21st Century Cures Act December 2016, and with it created QSEHRA, the HRA designed specifically for small businesses. QSEHRA is designed to work with plans purchased from the individual marketplace and tax credits your employees may receive. If you were an early adopter of small business HRA in 2017 you may be wondering if your benefit is maxing out 2018 updates.
Here’s what to know for QSEHRA 2018.
2018 QSEHRA Contribution Limits
The biggest change from 2017 to 2018 is an increase in the annual maximum contribution limit. If you were maxing out your allowance in 2017, you may want to double check your budget to see if you are able to increase your employee allowance for 2018.
|
|
Annual Maximum 2018 |
Annual Maximum 2017 |
|
Single Employee |
$5,050 |
$4,950 |
|
Employee + Dependents |
$10,250 |
$10,000 |
As you can see in the chart above, the 2018 QSEHRA contribution limits reflect a $200 annual increase for self-only employees and a $250 annual increase for employees with a family. That’s about $16.66 more per month for self-only employees and $20.83 for employees with a family!
Other changes…
One more IRS update you should be aware of involves offering the benefit to part-time employees. Employers have always had the option to exclude part-time employees. However, if you do decide to offer small business HRA benefits to them, you must offer them the benefit at the same rates as your full-time employees.
Let us help!
Do you need to make changes to your account? Just let our team know and we can update your plan quickly. Looking to set-up a small business HRA for your employees? That’s where Take Command Health’s new small business platform can help. We’ll handle all the accounting and legal legwork, take care of onboarding each of your employees, and make tax-time easy and painless. You’ll never have to hassle with receipts or worry about setting up a health plan again. Trust us, it’s easier than you think.
Hungry for more? Check out the overview section in our handy new QSEHRA Guide!
