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HRA-withholding ineligible charges

MDHRGirlMDHRGirl 29 Posts
in Benefits & Leave Vote Up0Vote Down
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!
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  • IT HRIT HR 595 Posts
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    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. 

     

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