QuickBooks comes in the best accounting software which is almost reached to every business owner to fulfill the business requirements. QuickBooks consists of many categories that enable different users to adopt it and use the benefit of advanced tools and features. QuickBooks also consist of hrs features and today’s article will cover the set up of hrs in QuickBooks.
The 21st Century Cures Act, signed by President Obama in December 2016, allows some small employers to reimburse employees for health coverage purchased through the individual market. This law provides stipulations for the Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), effective January 2017.
Table of Contents
Qualifying small employees can initiate reimbursements for medical purposes and qualified expenses. Below conditions should be met:
- The plan is Completely funded by the employer, without any employee contribution
- The employee should show proof of coverage
- All eligible employee can participate
- Funds can be used for payments or reimbursement of eligible employees or their family medical expenses including health insurance premiums
- Payments are restricted to $5150, for individuals and $10450 for family
- Reimbursement become taxable for any month the employee don’t have coverage
- An employer is not considered as Applicable Large Employer, those having less than 50 full time and equal employees
- Employer not offered group health plan to any of its employees
Steps for Setting up QSEHRA in Payroll
Payroll update 21710 created the new tax tracking type, Qual. Small ER HRA, which enables you so that you can track and report the amount including payments and reimbursements that you give each employee annually under the QSEHRA plan. This amount is without regard to the number of payments or reimbursements you paid to the employee. You can also use the new tax tracking if any one of the below situations applies to you.
- Being an employer you are self -administrating your QSEHRA plan. It means you are issuing employee reimbursement through the payroll, using a standard payroll pay item. In the scenario, you can continue issuing reimbursement payments in the same manner while adding the new QSEHRA tax tracking type to report payments on the form W2
- You are having the third party administrator(TPA) managing your QSEHRA plan. In this situation, administrators claim and issue payments directly to employees. QSEHRA tax tracking type will track the amount paid by the TPA for reporting on your employees form W2
For more information simply dial QuickBooks support number +1844-313-4856 and get connected to the QuickBooks support team. Team members are available 24*7 to give you instant and excellent support. Experts are polite, professional, and have massive experience in the same domain. You can also email at [email protected] and one of the experts contact you with the complete resolutions. The team is always available to resolve your query, issues, and errors. Experts are always trying to make your working way more easy and quick.