Ryan VaughnCOO of Incite Tax & Accounting. Ask me anything about your taxes.

Health Insurance for YOUR BUSINESS - PART 2 | Incite Tax #irssucks

9 Aug 2023 · 1 min

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In this segment, the speaker explains how their small business evolved its employee health benefit offerings as the team grew. Initially, with about 20 employees, they provided a Flexible Spending Account (FSA) which has strict IRS limits on contributions. As higher‑paid, more experienced staff joined, they introduced a Health Reimbursement Arrangement (HRA), which allows a slightly higher contribution limit. The company began offering either an FSA or an HRA based on an employee’s salary range. The speaker also covers options for individuals without a group plan, advising them to seek a private plan through a qualified health insurance agent and noting that eligibility for income‑based health subsidies depends on personal income. The overall message stresses the importance of consulting a knowledgeable agent to navigate contribution limits, salary‑based eligibility, and potential subsidies.

Chapters

When we were about 20 team members, we offered an FSA, which is a flex spending arrangement that has very specific rules tied to whatever the IRS is controlling, and you're limited to how much money you can put into that. We got to the point where, as we were bringing in higher-level team members with more experience who were paid more, we added a second option of an HRA, a health reimbursement arrangement. The HRA still has a limit, but it's a little bit higher than the FSA. Which is why we then at that point were offering both policies depending on what your salary range was. When it comes to your personal insurance, if you don't have a group plan, you obviously could go out and get a private plan, and that's by talking to any health insurance agent. Based on your income, you may or may not qualify for health subsidies. So again, it's really important that you talk to a qualified health insurance agent so they can walk you through all those details.