QuickBooks comes in the best accounting software which is almost reached to every business owner to fulfill the business requirements. QuickBooks consists of many categories that enable different users to adopt it and use the benefit of advanced tools and features. QuickBooks also consist of hrs features and today’s article will cover the set up of hrs in QuickBooks.
The 21st Century Cures Act, signed by President Obama in December 2016, allows some small employers to reimburse employees for health coverage purchased through the individual market. This law provides stipulations for the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), effective January 2017.
Steps for Setup Health Reimbursement Arrangement (HRA) In QuickBooks Requirements
Total Time: 25 minutes
Qualifying Small Employees can Initiate Reimbursements for Medical Purposes and Qualified Expenses. Below Conditions Should be Met
💠 The plan is Completely funded by the employer, without any employee contribution
💠 The employee should show proof of coverage
💠 All eligible employee can participate
💠 Funds can be used for payments or reimbursement of eligible employees or their family medical expenses including health insurance premiums
💠 Payments are restricted to $5150, for individuals and $10450 for family
💠 Reimbursement become taxable for any month the employee don’t have coverage
💠 An employer is not considered as Applicable Large Employer, those having less than 50 full time and equal employees
💠 Employer not offered group health plan to any of its employees
Also Read: How To Setup Fringe Benefits In QuickBooks
Setting Up Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) In Payroll
Payroll update 21710 created the new tax tracking type, Qual. Small ER HRA, which enables you so that you can track and report the amount including payments and reimbursements that you give each employee annually under the QSEHRA plan. This amount is without regard to the number of payments or reimbursements you paid to the employee. You can also use the new tax tracking if any one of the below situations applies to you.
⛔ Being an employer you are self -administrating your QSEHRA plan. It means you are issuing employee reimbursement through the payroll, using a standard payroll pay item. In the scenario, you can continue issuing reimbursement payments in the same manner while adding the new QSEHRA tax tracking type to report payments on the form W2.
⛔ You are having the third party administrator(TPA) managing your QSEHRA plan. In this situation, administrators claim and issue payments directly to employees. QSEHRA tax tracking type will track the amount paid by the TPA for reporting on your employees form W2.
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