It’s that time of year again for certain employers and insurance companies to pay the “Patient Centered Outcomes Research Fee.”
When examining whether an HRA is appropriate for a sole proprietor, it’s important to look at cash flow, not just the pure tax savings.
Are HRAs always appropriate for sole proprietors? An HRA will almost always save on taxes, but maybe not as much as advertised.
Are HRAs always appropriate for sole proprietors? Usually, but not always.
Below I am re-publishing a blog post I wrote last July (with edits and updates) regarding the “Patient Centered Outcomes Trust Fund” fee that is assessed against employers who have health reimbursement arrangements (HRAs). The only change for this year is that the fee is now $2 per person (it was $1 per person last […]
It’s a holiday week, so I’m re-publishing popular blog posts from the past. This is a timely re-post: the Patient-Centered Outcomes Trust Fund Fee is due by July 31! (*-The post below was written last year, when the fee was $1/person. The fee is now $2/person for 2014 filings.) —– Originally published July 19, 2013 […]
An insurance agent recently asked me the following question: can a small business that currently offers insurance to its employees drop the insurance and instead form a Health Reimbursement Arrangement (HRA, sometimes called a “Section 105 plan”) to reimburse employees for medical expenses? The short answer to the question is: NO. Background HRAs have existed […]
If your small business has an Health Reimbursement Arrangement (HRA), you probably owe a $1/employee fee because of the Affordable Care Act.