Last month we wrote about a new type of fringe benefit available to certain small employers called a Qualified Small Employer HRA.
These arrangements require employers to give written notice to employees who are eligible to participate for the upcoming year at least 90 days before the beginning of such year but allows the notice to be provided by March 13th, 2017 for the 2017 tax year.
Recent guidance issued in IRS Notice 2017-20 allows an extension beyond the March 13th deadline for the 2017 tax year. It reads in part:
An eligible employer that provides a QSEHRA to its eligible employees for a year beginning in 2017 is not required to furnish the initial written notice to those employees until after further guidance has been issued by Treasury and the IRS. That further guidance will specify a deadline for providing the initial written notice that is no earlier than 90 days following the issuance of that guidance.
Therefore, if your business is interested in offering a QSEHRA for the current tax year, there’s still time.
Please let us know if you have questions about this or previous newsletters.
Zirkle, Long & Associates, LLC