Consumer-Directed Health Care

Health Care Reform Help is Here, Get Started

Employers have many options to provide quality health coverage while still managing health care costs. We offer our Paychex Benefit Account, a consolidated consumer-directed health solution for businesses of any size looking to continue offering health insurance.

Compare and select one or a combination of the following plans:

  HRA FSA HSA

What is It?

Tax-free accounts that allow employers to reimburse employees for eligible medical expenses not covered by a company health insurance policy. Helps lower employer and employee taxes, and employers can choose to have funds rolled over to the next plan year.

Allows employees to pay for qualified medical expenses on a pretax basis, which can reduce their taxable income. For employers, it can reduce FICA and FUTA liabilities.

Pretax savings tool that combines with a qualified high-deductible health insurance plan. Employers can reserve tax-free funds for qualified medical expenses. Can be used for non-qualified medical expenses for an additional tax and fee.

Funded By

Employer

Employer or employee

Anyone

May Be Used With

Any or no health plan

Any or no health plan

Qualifying high- deductible health plan is required to contribute.

Qualified Expenses*

Employers may allow account to reimburse all or some un-reimbursed expenses. Exceptions apply.

Medical, dental, and dependent-care expenses (co-payments, deductibles, and some over-the-counter medications). Exceptions apply.

Any un-reimbursed expenses. Exceptions apply.

Unused Amount

Employer may configure the HRA to allow unused funds to carry over to the next year.

Does not carry over, but employer can add a grace period at end of the plan year.

Unused amount carries over.

Portable Between Employers

No

No

Yes

Tax Savings

Employer contributions are tax-free. Employees do not contribute.

Tax-free employer and employee contributions

Employer and employee salary reductions are tax-free with a section 125 plan. Outside of a section 125 plan, individuals can take a deduction on their personal taxes.

Contribution Restrictions

Determined by employer's plan design

Employee contributions up to $2,500 for a taxable year or company maximum

Restricted by IRS guidelines

Catch-Up Contributions Allowed for Older Workers

No

No

Yes

Integrates with Other Plans

Select any or all of these plans. Restrictions may apply.

* For more information about our Paychex Benefit Accounts, call us at 1-800-322-7292.

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