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Use this tool to design compliant reimbursement rates for your QSEHRA
QSEHRA allows employers to reimburse employees tax-free for health insurance while keeping their budget in check. To design a compliant QSEHRA plan, there are two simple rules an employer must follow:
You can reimburse less than these amounts, you just can’t go over them. These numbers are tied to inflation so we expect them to increase a bit each year.
2018 | 2019 | 2020 |
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Single | Family | Single | Family | Single | Family | |
Annual | $5,050 | $10,250 | $5,150 | $10,450 | $5,250 | $10,600 |
Monthly | $420 | $854 | $429 | $870 | $437.50 | $883.33 |
The IRS calls this the “same terms requirement”. If you want to vary your reimbursement rates, the IRS provides to methods that still meet the same term requirements: reference plan or percentage basis. You can read more in the Reimbursement Rules section of our QSEHRA Guide.
To make your life easier though, we’ve built a calculator to help you design a compliant plan.
Select an option below:
Single Employee | Employee + Spouse | Employee + Kids | Employee + Family |
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Get up and running in 2-3 minutes with our online QSEHRA Designer and Administration platform. Save money on taxes and offer your employees tax-free benefits.
Here are some commonly asked questions about how our QSEHRA reimbursement plan calculator works.
When the options "all the same" or "maximum reimbursement" are selected, the designer applied the appropriate rates to each employee category.
When "Vary by Family Size" is selected, the plan designer uses two methods described by the IRS to suggest compliant rates:
For the Reference Plan Method, the designer is using rules based on the Second Lowest Cost Silver Plan (SLCSP) in a given area. SLCSPs are used to calculate tax-credits. These are general rules and not tied to a specific reference plan, but should be very close. Check local plans in your area for more reference options.
If employees don't use all of their QSEHRA allowance in a given month, the balance will roll-over to the next month but the funds remain with the employer. At the end of the year, the employer can decide whether or not to roll year-end balances over to the next year or reset. Any unused funds remain with the employer.
Here's a helpful article that explains more about how unused QSEHRA balances are handled.
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