What are the benefits of offering an HRA to our
employees?
You are most likely considering an HRA because you have
decided to lower your health plan expenses by not providing
your employees with group health insurance. The HRA will
provide financial assistance to cover their eligible out-of-pocket healthcare expenses.
Health reimbursement arrangements (HRAs) are tax-advantaged accounts that are funded with church dollars to pay employee expenses not covered by their health plan. The employer outlines what expenses will be covered in the HRA summary plan document. For example, an HRA could pay all eligible medical expenses, including premiums for health and long-term care insurance, or the HRA could be limited to cover only dental or vision expenses.
According to Federal regulations, the church contributions must be comparable, that is they must be in the same dollar amount for all employees with the same category of coverage. You can vary the level of contributions for full-time vs. part-time employees. There
maybe other variations around comparability.
Still, have questions?
Contact Pro Advisor Support to answer your questions.
Clergy Financial Resources
Tax I Payroll I Bookkeeping I HR
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421.0101
Fax: (888) 876.5101
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (888) 421-0101
Fax: (888) 876-5101
Email: clientservices@clergyfinancial.com