Setting up an HRA is also a smart strategy for a family business, and will typically save the business owner thousands of tax dollars every year
Fort Collins, CO (PRWEB) December 06, 2012
HSA for America is reporting a seasonal rush in among small businesses setting up Health Reimbursement Arrangements, commonly known as HRAs. An HRA allows an employer to reimburse employees for dental and health care on a 100-percent tax-free basis. That includes reimbursing the cost of health insurance premiums to employees. An HRA can provide a deduction for the business, and the reimbursements are excluded from gross income for the employees. The deadline to establish an HRA for 2012 is the last day of the year - December 31.
An HRA can help employers who have been hard hit by increasing rates for group health insurance. Through an HRA, an employer can offer a monthly allowance to an employee who purchases health insurance in the individual market, and to also reimburse for dental or other out-of-pocket medical expenses. Establishing an HRA will typically allow a small business to provide health care for their employees at a much lower cost.
Not only do HRAs provide cost savings for employers, but they are also simple to maintain and require little management involvement. “The employer no longer has to worry about administering a group health insurance plan,” says Wiley Long, the president of HSA for America. “This is working best for small businesses where all employees and their family members can easily pass the health questionnaire that is part of applying for individual coverage.”
“Setting up an HRA is also a smart strategy for a family business, and will typically save the business owner thousands of tax dollars every year,” added Long. “This will work as long as the spouse works in the business.”
HRAs will become increasingly important in the small business arena in 2014 when employers will face new requirements and penalties regarding the provision of health benefits for their workforce. The deadline to set up an HRA for 2012 is December 31, and HSA for America encourages small business owners to take advantage of this opportunity. More HRA information and an online process to establish a HRA are available at HSA for America’s Health Reimbursement Arrangements web page.
About HSA for America:
As the nation's leading independent HSA expert, HSA for America has earned a reputation for providing superior educational resources for individuals, families and small businesses. With a comprehensive website, consumers can evaluate high-deductible health insurance plans that allow them to establish an HSA.
You will also find guidelines for selecting an HSA administrator based on fees and investment options, and topics to help consumers maximize their savings on premiums and taxes.
Consumers may access HSA for America’s instant quote engine and online applications or request individualized assistance. Confidential consultations regarding HSA-qualified plans and Health Reimbursement Arrangements may be arranged by calling 1-866-749-2039 from 9 AM through 11 PM Eastern.