Park City, Utah (PRWEB) January 28, 2013
Today, Zane Benefits, Inc. published new information on health reimbursement arrangements for sole proprietors. Zane Benefits, which provides comprehensive and flexible alternatives to traditional employer sponsored health benefits, is the leader in defined contribution and health reimbursement accounts.
According to Zane Benefits' website, health reimbursement arrangements, or HRAs, are employer-provided plans that reimburse employees for health care expenses. An HRA may reimburse employees for qualified medical expenses such as co-payments, deductibles, and health insurance premiums. Due to IRS restrictions on owner participation, Sole Proprietors are not eligible under federal tax laws to receive benefits directly from an HRA. However, the law provides a "loophole" for a sole proprietor that employs his or her spouse.
What is a Sole Proprietor?
According to Zane Benefits’ website, a sole proprietorship is a business operated by a single individual. By default, a business with a single owner that is not established as a corporation or limited liability company (LLC) is recognized as a sole proprietorship. Sole proprietorships are the easiest and most common types of businesses to operate.
How Sole Proprietors Can Take Advantage of Health Reimbursement Arrangements
According to Zane Benefits’ website, while the sole proprietor is not eligible for a Health Reimbursement Arrangement, the spouse of a sole proprietor is eligible if he or she is a W-2 employee of the sole proprietorship. Here are the basic requirements for a sole proprietor to take advantage of an HRA:
- The sole proprietor must be married.
- The sole proprietor's spouse must be a W-2 employee.
About Zane Benefits
Zane Benefits was founded in 2006 to provide a revolutionized SaaS (Software-as-a-Service) administration platform ("ZaneHRA") for Health Reimbursement Arrangement (HRAs) and defined contribution healthcare. The flagship software provides a 100% paperless administration experience to employers and insurance professionals that want to offer better health benefits without a traditional group health insurance plan at lower costs. For more information about ZaneHRA, visit http://www.zanebenefits.com.