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.
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.
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. Most employers prefer integrating the reimbursements pre-tax into the next payroll cycle for efficiency.
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.
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:
If you utilize Gusto, the reimbursement report can also be exported as a CSV file for easier upload and integration, minimizing manual work and errors.