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How can I Make Health Expenses Tax Deductible? Health Reimbursement Arrangements (HRA) can benefit your business. Understand how they work and how to get started in this guide. For child care business
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An HRA, or Health Reimbursement Arrangement, is a type of employer-funded health benefit plan that reimburses employees for incurred medical expenses and, in some cases, allows them to pay for health insurance premiums.
Employers who offer an HRA to their employees are required to file the necessary documentation and report contributions made to the HRA as part of their employee health benefits.
To fill out an HRA, employees need to submit eligible medical expense receipts along with a claim form provided by their employer. Employers then review and approve the claims for reimbursement.
The purpose of an HRA is to help employees manage out-of-pocket medical expenses by providing them with tax-free reimbursements for eligible health care costs.
Employers must report the total contributions made to the HRA, the amount of reimbursements distributed to employees, and any unused amounts that may carry over to the next year.
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