Qualified small employer HRA

In accounting, qualified small employer HRA means an HRABenefitsHealth reimbursement arrangementAn 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 for an employer that is not an ALEBenefitsApplicable large employerAn employer that averaged at least 50 full-time employees, full-time equivalents included, over the prior calendar year — the employers the ACA's employer mandate and Form 1095-C reporting apply to. Companies under common control are counted together and offers no group health planBenefitsGroup health planA health plan an employer maintains for its employees — insured or self-insured. Subject to ERISA for a private employer, and to COBRA once the employer has 20 or more employees, reimbursing employees with their own minimum essential coverageBenefitsMinimum essential coverageThe health coverage that satisfies the ACA — including an eligible employer-sponsored plan. An ALE must offer it to avoid the §4980H(a) payment, and California requires its residents to have it, on the same terms for all — up to $6,450 self-only and $13,100 family for 2026, with written notice 90 days before the year.