Qualified Small Employer Health Reimbursement Account (QSEHRA)

What is QSEHRA?

A Qualified Small Employer Health Reimbursement Account (QSEHRA) allows small employers to provide non-taxable reimbursement for certain health care expenses to their employees. In some states, QSEHRAs allow small employers to offer additional plan choices without the need for a group health plan.

Who is eligible for QSEHRA?

• Only companies that have fewer than 50 full-time employees

• Employers must provide the arrangement on the same terms to all full-time employees (reimbursement amounts may only vary based on age and the number of individuals covered)

• Employers cannot offer a group health plan, like SHOP coverage or a Flexible Spending Account (FSA)

Where do amounts show on the W2?

QSEHRA amounts recorded are mapped to Box 12 Code FF.