Employers handle the HRA reimbursements directly with their employees. Each month, they receive a report detailing approved claims, which they use to process reimbursements according to the payroll schedule or by issuing checks.
The employer sets reimbursement allowances and processes payroll reimbursements while navigating policies for any retroactive claims outside the platform. The employee is responsible for submitting proof of payment, while the HRA administrator validates compliance and provides detailed reports.
Remember, the tax-free nature of the QSEHRA & ICHRA comes from having your plan documents in place, staying compliant, and having the proper year-end reports. With our HRA platform at Take Command Health, we'll take care of that part for you. Each month, we'll deliver a reimbursement report, so you know exactly how much to reimburse your employee. Claims approved after the monthly reporting date are added to subsequent reports, ensuring all eligible expenses are accounted for systematically.
Compliance reviews are conducted by Take Command to ensure all documentation submitted adheres to regulations and HRA guidelines. Employees must provide valid proof of payment, such as invoices or receipts, for eligible expenses.
Each report is generated on the last day of the month and includes a breakdown of claims submitted by employees, along with the approved reimbursement amounts. Employers can export these reports as a CSV file for seamless integration into payroll systems. This report generation process is part of Take Command's notional ledger system, ensuring employers have accurate information for reimbursement.
Getting your employees the money is the final part. Here are some of the common reimbursement methods we see:
Employers are responsible for reviewing these reports, adding the approved reimbursement amounts to employees' paychecks, and ensuring timely payment. To do so efficiently: 1. Set tax-free allowance limits based on the HRA policy. 2. Collect and validate proof of employee expenses. 3. Integrate approved reimbursements into the following payroll cycle.
Reimburse through your payroll system (recommended. See this article for help on this.)
Write a check
Pay cash
Use Paypal or another transfer service
AutoPay (available in specific setups depending on policy configuration)
Unlike FSAs and HSAs, QSEHRA & ICHRA plans are "arrangements," rather than accounts. This means that all payments to employees through the HRA are reimbursements, received only after a premium or expense has already been paid out of pocket by the employee. Take Command uses a notional ledger approach to track these reimbursements, creating detailed reports for employer action but not disbursing funds directly.
Additionally, HRAs are not pre-funded accounts; reimbursements are only initiated after the employee incurs an eligible expense and submits proper documentation for review.
Common Questions and Best Practices
Can reimbursements be processed retroactively?
No, reimbursements cannot be processed retroactively within Take Command’s platform once an HRA is closed. Employers may independently manage retroactive claims outside the platform. Is proof of payment always needed?
Yes, unless using enrollment methods like Easy Enroll, where data is obtained from carriers directly. Are HRAs pre-funded?
No, HRAs, ICHRAs, and QSEHRAs operate on a reimbursement-only basis, contingent on validated employee submissions.
Integrating Reimbursements with Gusto Payroll
If you’re using Gusto for payroll processing, you can streamline QSEHRA reimbursements through either of the following methods:
Method 1: Importing Reimbursement Data via CSV
Download the reimbursement CSV from the Take Command member portal.
Log in to your Gusto account and go to Pay > Run Payroll.
Select Import payroll data, then upload the downloaded CSV.
Address any flagged errors (e.g., duplicate names or mismatched fields) following prompts in Gusto.
Method 2: Adding Recurring Reimbursements
Navigate to People in Gusto and select an employee's profile.
Click Add Recurring Reimbursement and enter the details.
Save changes to ensure reimbursements appear in the next payroll run.
You can also use Gusto to automate reimbursement data handling, making it easier to integrate each month’s data without errors by following the steps outlined above.