The IRS has extended the period to provide an initial written notice to eligible employees regarding a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) under IRC Sec. 9831(d). A QSEHRA is similar to a regular health reimbursement arrangement, but must meet other requirements and is exempt from the market reform penalty. QSEHRAs are available to employers with less than 50 full-time equivalent employees that don’t offer group health plans and can be used to reimburse an employee’s individual health insurance premiums as well as other medical expenses. Although the employer must furnish a written notice to its eligible employees at least 90 days before the beginning of a year for which the QSEHRA is provided, the IRS announced that initial notices aren’t required any earlier than 90 days following the issuance of further guidance from the IRS.
If you have any questions, please contact your Linkenheimer LLP CPA.
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