HRA for part time workers
originally posted: 11/22/2006 reposted: 2/18/2011 This post has not been recently reviewed or revised by the author and may be out of date. If you notice an error or are in doubt, please send a new question by email or ask for an update. Email asktony@tonynovak.com.
Q: In order to offer an HRA to the employees of a C corporation, do the employees have to work full-time? This is a situation where there are only 3 employees who also work elsewhere and have health insurance elsewhere. We want to set up an HRA to cover the out of pocket expenses for co-pays and deductibles. Is that going to be a problem if they do not work for the corporation full-time?
A: No problem; there is no full time requirement to offer health benefits to employees through an HRA. This is, in fact, an excellent and efficient way to provide economical low level health benefits to part time workers.
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