The Wagner Law Group
Wagner Law Group is a nationally recognized practice in the areas of
ERISA and employee benefits, estate planning, employment,
labor and human resources, investment management and real
in 1996, The Wagner Law Group has 28 attorneys engaged
exclusively in employee benefits, estate planning and
employment law. Six of our attorneys are AV rated by
Martindale-Hubbell as having very high to preeminent legal abilities
and ethical standards. The firm is among the largest ERISA boutiques in
the country. Our practice is national in scope, with clients in more
than 40 states and several foreign countries.
Wagner Law Group
Connecticut Ave., N.W.
Fax: (561) 293-3591
7108 Fairway Drive
Palm Beach Gardens, FL 33418
East Kennedy Boulevard
Tampa, FL 33602
Francisco, CA 94104
100 South 4th Street, Suite 550
St. Louis, MO 63102
March 9, 2017
Health and Welfare Law
Deadline for Small Employers to Furnish QSEHRA Notice to Employees
has issued Notice 2017-20 to extend the deadline for employers who
establish a qualified small employer health reimbursement arrangement
("QSEHRA") to send a required notice to employees
concerning the arrangement.
Background. The 21st Century Cures Act (the
"Act"), among other things, established QSEHRAs. The
Act provides that, effective January 1, 2017, eligible small
employers may begin offering QSEHRAs to eligible employees.
Requirements. A QSEHRA,
- be funded
solely with employer contributions, which means employees cannot
make salary reduction contributions under the arrangement.
- be offered
to all eligible employees on the same terms. However, the
employer can exclude employees with less than 90 days of
service, certain part-time and seasonal employees, certain
collectively bargained employees, and non-resident aliens.
- limit annual
employer contributions to $4,950 per year for employee-only
coverage and $10,000 for family coverage.
payment or reimbursement for health care expenses incurred by
the employee (or the employee's family member), including
premiums for individual health insurance.
Employer Eligibility Requirements. An employer is eligible to establish a
- it is not an
Applicable Large Employer under the ACA (i.e., an
employer that had 50 or more full-time employees or full-time
equivalent employees during the preceding calendar year); and
- it does not
offer group health coverage to any of its
QSEHRA Employee Notice
that offer QSEHRAs must furnish a written notice to all eligible
employees at least 90 days in advance of the beginning of the new
plan year. The notice must explain:
- the amount
that will be the employee's benefit under the arrangement for
the plan year;
- that the
employee should provide specified information to any Health
Insurance Marketplace to which the employee applies for an ACA
premium tax credit; and
- if the
employee is not covered by minimum essential coverage during the
entire plan year: (i) the employee may be subject to the ACA's
individual mandate penalty, and (ii) reimbursements under the
QSEHRA may be included in income.
IRS Notice 2017-20. IRS has extended the deadline for the
notice requirement from March 13, 2017 to at least 90 days after the
IRS issues additional guidance concerning the content requirements
for QSEHRA notices. IRS also provides employers with transition
relief from penalties for failures to furnish QSEHRA notices until
after the IRS issues additional guidance.
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