HRA-withholding ineligible charges
MDHRGirl 29 Posts
This is our first year using an HRA. What are the laws and what do I need to do to withhold charges to the HRA that are non-covered charges? Can I just go ahead and withhold them or is there some type of form or agreement the employee needs to complete prior to? Please advise!
Your benefits broker should be able to help answer some of these questions. If not, then maybe you need to look for a new one (I am in MD and can give you the name of one I really like). I am not sure what you are withholding as it was my understanding with an HRA that the employer is reimbursing the employee for applicable expenses. To answer your question about withholding - any time I am making a withholding from my employees paycheck I have the employee sign something. This includes tax forms, Simple IRA/401k, employee contributions to HSA/FSA, employee loan, etc. You always want to cover the employer to be able to explain what the withholding is for.