Your Compliance Edge

HSAs, FSAs & HRAs

To help employees manage health and dependent care costs, many employers offer health savings accounts (HSAs), flexible spending arrangements (FSAs), or health reimbursement arrangements (HRAs) as part of their benefits package. Learn the key features and benefits of each account in this section.

HSAs

A HSA is a savings account that enables an employee to pay and save for health care expenses in a tax-advantaged way. Used in conjunction with a high deductible health plan (HDHP), a HSA may receive contributions from any person, including the employer. Click here for more information.

FSAs

There are two types of FSAs: health FSAs and dependent care FSAs. A Health FSA allows employees to be reimbursed for medical expenses in a tax-advantaged way without having to be enrolled in a HDHP. A dependent care FSA reimburses employees for certain dependent care expenses in a tax-advantaged way. FSAs are usually funded by employees, but employers can contribute to them as well. Click here for more information.

HRAs

There are two types of HRAs: Traditional HRAs and Qualified Small Employer HRAs (QSEHRAs). Both accounts are funded solely by employers to help employees pay for medical expenses on a tax-free basis. However, Traditional HRAs can only be offered in conjunction with a traditional group health insurance plan, while QSEHRAs can only be offered by employers that do not offer group health, dental, or vision insurance. Click here for more information.


FREE Labor Law Penalties
by Company Size Chart

Alerts you to the penalties associated with key federal laws such as
COBRA and discrimination.

 

 

Download HR360

 

Request a Demo 

or Log In