Can I Offer a Health Insurance Stipend to My Employees?

Can you offer a health insurance stipend to your 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.

Leslie Harding

Leslie Harding | Former Customer Experience Writer, Gusto

Leslie Harding is a former customer experience writer who helped small businesses get a better handle on payroll, taxes, and everything in between.