QSEHRA - Non Taxable Health Reimbursement
OfficeJess
Member Posts: 6
How are others in the US using Wave to handle non-taxable health insurance premium reimbursements like QSEHRA? How are you setting this up in payroll? Or using another feature? Thanks!
0
Comments
@OfficeJess,
Health insurance for more than 2% shareholder is deductible when it is included as compensation (Box 1) of the owner's W-2. It is not deducted as health insurance but rather compensation. An amount is entered in box 14 so that the shareholder can take an above the line deduction on Form 1040 for self employed health insurance. A little convoluted way of getting a deduction.
See this link if you are using Wave payroll.
https://support.waveapps.com/hc/en-us/articles/360035818651
Additionally I offer an easy to use, full service payroll in every state.
Thanks Mike but this is not for shareholders or owners. As a small business owner we are offering health insurance premium reimbursement through QSEHRA. Are you familiar with that program? A Qualified Small Employer Health Reimbursement Arrangement (QSEHRA), also known as Small Business HRA, is an Affordable Care Act-compliant health coverage plan for businesses with fewer than 50 full-time-equivalent (FTE) employees. ... Employees must provide proof of their actual medical costs to receive reimbursement. I utilize a 3rd party to administer the program, but need to set up, in Wave, a way to direct deposit pay the employee but NOT have taxes removed nor reported as taxable income because legally it is not. https://www.takecommandhealth.com/qsehra-guide
OfficeJess,
Sorry for the misinterpretation. I think you should check with Wave payroll support, I assuming that is who you are using, to see how to report items in box 12FF. I know the platform I use can do that but not sure about Wave's capabilities. Feel free to contact me if you have any interest.
Thanks Mike!