Health Insurance

Can I offer a health insurance stipend to my employees?

The short answer? Generally no. It is not compliant to reimburse your employees directly for the cost of their individual health insurance plans. The only way to provide funds for your employees to pay for their own individual health insurance is through a Health Reimbursement Arrangement (HRA – also called a Health Reimbursement Account). And of course, you can always pay your employees more if you are worried about their ability to pay for their living expenses.

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