Employers handle the HRA reimbursements directly with their employees.
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.
Getting your employees the money is the final part. Here are some of the common reimbursement methods we see:
Reimburse through your payroll system (recommended. See this article for help on this.)
Write a check
Pay cash
Use Paypal or another transfer service
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.
Here is a little more info for employers on reimbursing employees directly through payroll. Or, if you use Gusto, Zenefits, or Quickbooks/Intuit Payroll, you can check out specific instruction here: