Employers do not have to provide the QSEHRA notice 90 days before the initial start of a new QSEHRA. For a newly established QSEHRA, employees can receive the notice on or before the date they first become eligible for the benefit.
What is the QSEHRA employee notice?
The notice is a required compliance document
Federal law requires employers offering a QSEHRA to provide eligible employees with a written notice describing:
The employee's annual benefit amount
How the QSEHRA may affect Premium Tax Credit eligibility
The requirement to maintain qualifying health coverage for tax-free reimbursements
The notice helps employees understand how the benefit works and what actions they may need to take.
Do I need to provide the notice 90 days before my first QSEHRA starts?
No
When a QSEHRA is being offered for the first time, all employees are considered newly eligible on the effective date of the plan.
In that situation, the notice may be provided on or before the date the QSEHRA first becomes effective. Providing the notice when employees first become eligible satisfies the requirement.
Example
QSEHRA effective date: January 1
Employees become eligible: January 1
Notice delivered: January 1
✔ Compliant
When does the 90-day notice rule apply?
The 90-day requirement applies to future plan years
After your QSEHRA is established, employees who are already participating at the beginning of the next plan year must generally receive a notice at least 90 days before that new plan year starts.
Example
Current plan year ends December 31
New plan year begins January 1
Employee is already eligible
The employee should receive the annual notice approximately 90 days before January 1.
What about new employees hired during the year?
New hires receive the notice when they become eligible
If an employee becomes eligible after the plan year has already started, the notice must be furnished on or before the date the employee first becomes eligible to participate.
Example
QSEHRA plan is already active
New employee becomes eligible July 1
The employee should receive the notice on or before July 1. ✔
How does Take Command help employers stay compliant?
Take Command includes the required notice as part of plan setup
When a QSEHRA is established through Take Command:
Required plan documents are generated.
The employee notice is included.
Employees receive access to their onboarding materials.
The notice remains available through the employee portal.
For annual renewals, updated notices can be distributed before the next plan year begins to help employers satisfy notice requirements.
What happens if an employer fails to provide the notice?
Employers may be subject to IRS penalties
Federal law includes penalties for failing to provide the required QSEHRA notice to eligible employees. The penalty can be assessed on a per-employee basis, subject to annual limits.