The QSEHRA Reimbursement Statement shows how much you should reimburse each employee for the reporting period and serves as the source of truth for reimbursement processing.
What is a Reimbursement Statement?
A Reimbursement Statement summarizes:
Approved reimbursement claims
Employee allowance balances
Carryover amounts
Tax-free reimbursements
Taxable reimbursements
Total reimbursement amounts owed
Take Command reviews and approves claims, then generates the Reimbursement Statement for employer reimbursement processing.
What should I do when I receive a Reimbursement Statement?
To process reimbursements:
Open the Reimbursement Statement.
Review each employee's reimbursement details.
Review tax-free and taxable reimbursement amounts.
Process employee reimbursements through payroll or another payment method.
Retain the statement for payroll and tax records.
What does Tax-Free mean?
Tax-Free reimbursements are approved expenses that are not subject to payroll or income taxes.
Examples may include:
Individual health insurance premiums paid with post-tax dollars
Eligible medical expenses
Other IRS-qualified QSEHRA expenses
What does Taxable mean?
Taxable reimbursements must be treated as employee taxable income.
A common example is reimbursement of premiums paid through a spouse's employer-sponsored group health plan when permitted by the QSEHRA.
Taxable reimbursements may be subject to payroll withholding and reporting requirements.
What does Current Allowance mean?
Current Allowance is the employee's available monthly QSEHRA allowance for the current reporting period.
What does Previous Allowance mean?
Previous Allowance is unused allowance carried forward from prior periods when the plan allows rollover.
What does Total Allowance mean?
Total Allowance is the maximum amount available for reimbursement during the reporting period.
It is calculated as: Current Allowance + Previous Allowance
What does New Claims mean?
New Claims are reimbursement requests that:
Were submitted during the reporting period
Were approved since the previous statement
What does Previous Unreimbursed Expenses mean?
Previous Unreimbursed Expenses are approved claims that were not fully reimbursed in an earlier period because available allowance was insufficient.
These claims remain eligible for future reimbursement.
What does Claims Subtotal mean?
Claims Subtotal is the total approved reimbursement balance before allowance limits are applied.
It includes:
New Claims
Previous Unreimbursed Expenses
What does Reimbursement Total mean?
Reimbursement Total is the amount you should reimburse the employee for the reporting period.
The Reimbursement Total is the lesser of:
Claims Subtotal
Total Allowance
This is the amount employers should use when processing reimbursements.
Why is Reimbursement Total less than Claims Subtotal?
This usually occurs when approved claims exceed the employee's available allowance.
Common reasons include:
Claims exceeded available allowance
Previous claims are awaiting reimbursement
Available allowance has been exhausted
Remaining approved claims may be carried forward to future periods when allowed by the plan.
Why does an employee show $0 reimbursement?
An employee may show $0 reimbursement when:
No claims were submitted
Claims are pending review
Claims were denied
No allowance is available
The employee is not eligible during the reporting period
What should I do if a reimbursement amount looks incorrect?
To review a reimbursement amount:
Verify employee eligibility.
Review claim approval status.
Review available allowance balances.
Compare the statement with payroll records.
If questions remain, contact Take Command Support.
Does the Reimbursement Statement issue payments?
No. The Reimbursement Statement:
Does not issue payments
Does not transfer funds
Does not reimburse employees automatically
Employers are responsible for issuing reimbursement payments directly to employees.
Key takeaway
The Reimbursement Statement is the source of truth for QSEHRA reimbursement processing and shows the amount owed to each employee based on approved claims, available allowance, and plan rules.