We get a lot of questions from small businesses asking if they can or should offer a QSEHRA and HSA together for their employees. We think offering both benefits together is a great way to maximize benefit dollars. But there are a few things you need to understand before you sign up.
Offering your employees benefits is a great way to keep them engaged in your business. Determining the appropriate benefit to offer is tough, especially when you are trying to maximize your dollars.
QSEHRA (Qualified Small Employer Health Reimbursement Arrangement):
HSA (Health Savings Account):
If your company would like to offer your employees both the QSEHRA and HSA together there are a few important things to note. In order to contribute to your employees HSA, the QSEHRA will need to be set up to reimburse premiums only. This way the QSEHRA will be HSA eligible. Employees will use the QSEHRA to reimburse their health insurance premiums, and the HSA to cover their medical expenses.
The IRS puts limits on how much employers can contribute to the funds each year. The IRS has increased the limits for 2021.
QSEHRA | HSA | |
Individual Maximum Rate | $5,300 | $3,600 |
Family Maximum Rate | $10,700 | $7,000 |
Excited to offer your employee benefits, but not sure where to start? It's easier than you think, and Take Command can help! Schedule a call with one of our knowledgeable teammates and we can help you determine the benefit right for your company.
Hungry for more? Check out the QSEHRA requirements chapter in our handy new QSEHRA Guide!