How do I set up Health Insurance for my employee?

If you are interested in setting up a Health Reimbursement Arrangement (HRA) talk, you can contact our friends over at Take Command Health!

You can set up an Individual Coverage Health Reimbursement Arrangement (ICHRA). This allows you to reimburse your employee for qualified health expenses and/or their health insurance premiums through an ICHRA without a cap. It also gives you the ability to offer different reimbursement amounts to each employee.

You can enroll in a health insurance policy through the Small Business Health Options Program (SHOP). This may enable you to take advantage of the Health Insurance Tax Credit for Small Employers.

You can also set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), which gives some additional tax benefits to the employer, but also has additional set up and administration expenses. We support QSEHRA reporting on W-2s when it is set up through Take Command Health.

Some accountants believe that if you have a single household employee, you can simply reimburse your employee for their health insurance premiums directly. Poppins does not take a position as to whether such reimbursements are income subject to payroll taxes. You should discuss with your accountant before deciding how to proceed.

If your accountant says you can do this tax free, you can enter it as an Employer Reimbursement in the Payroll tab. If they say it needs to be taxed, you can enter it into the Other Amounts field in the Payroll tab.