A QSEHRA is available only to small employers that don’t offer a group health plan, letting them reimburse employees tax-free up to an annual IRS cap.
How it works
The allowed reimbursement is whichever is smaller: actual eligible expenses, or the annual limit for the chosen coverage tier (self-only or family).
What this does not include
Eligibility for a QSEHRA requires the employer to have fewer than 50 full-time employees and not offer a group health plan — this calculator computes the reimbursement limit only, not employer eligibility.
How to use this calculator
- Enter the coverage tier and actual eligible expenses.
Frequently asked questions
How is QSEHRA different from a standard HRA?
A QSEHRA is specifically designed for small employers without a group health plan and has its own annual dollar caps set by the IRS; a standard HRA typically pairs with an employer’s own group health plan.
Can employees use QSEHRA funds for individual health insurance premiums?
Yes — that’s one of QSEHRA’s key features, letting employees purchase individual coverage on the marketplace or elsewhere and get reimbursed tax-free.
What happens to unused QSEHRA funds at year-end?
This depends on the specific employer’s plan design — some allow unused amounts to roll over, while others follow a use-it-or-lose-it structure similar to an FSA.
