Has anyone set up a QSEHRA for their employees? How did you do it?

Welcome to the Community. I can help you set up the Small Employer Health Reimbursement Arrangement (QSEHRA).

Please be aware that our payroll services do not automatically include employer-sponsored health insurance. Depending on your payroll service, you may need to contact us to have it included or take additional steps when filing your health insurance on W-2s.

If you wish to add the health insurance amounts manually, follow these steps:

1. Go to Taxes, then select Payroll Taxes.
2. Select Filings.
3. Choose Resources.
4. Select W-2s.
5. Under Employee W-2s, click Edit Box 12/13 on W-2 Copies B, C, & 2 (employee).
6. Enter the dollar amount for each employee:
   • Use Box 12DD for the coverage you provide your employees.
   • Use Box 12FF for reimbursements you give your employees.
7. Select Submit.

For further details about how to reimburse your employees, please check out this article: Report employer health insurance on W-2s.

You can also contact our Payroll Support if you want us to add it on your behalf or need guidance on tracking it.

Moreover, you can generate various payroll reports that provide a detailed view of your employees' gross pay, deductions, and tax data. For more information, please refer to this article: Run payroll reports.

Let me know if you have further concerns about setting up QSEHRA or require assistance with QuickBooks. Keep safe.

Thank you for this information - it will help at year end when I need to do W2's.  I also need to know how to set up for the actual reimbursement and ditribution of the funds.  

Glad to know my colleague provided the helpful information, Waterma. I'm here to help you set the reimbursement and distribute the funds correctly.

In QuickBooks Online Payroll, you can create a reimbursement item by following the steps below:

1. Go to Payroll and then Employees.
2. Select your employee.
3. From Pay types, select Edit.
4. Scroll to the Additional pay types section and select Reimbursement.
   • If there's an existing reimbursement pay type, you can add a new one in the Common pay types section dropdown. Just select + Another Reimbursement type to add new.
   • You can add the default amount or leave it blank and enter it as you run payroll.
   • You can also rename this pay type. To rename, select Edit next to Reimbursement.
5. Once done, click Save.

Once done, I recommend updating your accounting preferences to ensure the reimbursement amounts are posted to the correct account.

Then, when you run payroll, enter an amount in the Reimbursement field.

Don't hesitate to jump right back and ask more questions if you need anything else. We're always ready to help if you need one.