Health reimbursement arrangement
In accounting, health reimbursement arrangement means an employer-funded promise to reimburse employees' medical expenses, tax-free, up to an amount the employer sets. Employees cannot contribute. QSEHRAs, individual coverage HRAs and excepted benefit HRAs are the kinds a small employer meets.
Also called HRA.
Authority: IRS Pub. 969 (opens in a new tab). Sources
The lesson that teaches this
From the free founder back-office course, taught on one company's books, with exercises to work it yourself.
For founders
The same idea written for a founder: what it costs a startup that ignores it, and what to do in a real month.
What it is not called
Each of these means something else. Use one here and an accountant reading the product notices.
- HSA (an account the employee owns)
Also in Benefits
Defined in Lexicon. This page is generated from that document, so the two can't disagree.