Employers who sponsored QSEHRA Plans in 2017 must report the benefit on employee’s W-2 form.

If you have eligible employees who are entitled to receive payments and reimbursements from the Small Business HRA (also known as a QSEHRA) for the calendar year 2017,, please be aware you must do the following:

  • Enter code FF in Box 12a on the employee’s W-2 form (This code was been assigned to represent QSEHRA payments/reimbursements.)
  • Enter the maximum PERMITTED benefit. In 2017, this was $4,950 for an individual and $10,000 for a family.

For instance, this is what the W-2 would look like for an employee with individual coverage under the QSEHRA who was reimbursed for $3,500 in benefits.

2017 Form W-2

Complete and distribute your employee W-2 forms by January 31, 2018 and be sure to use the new FF code in box 12 for any QSEHRA eligible employees. For more information, click on the following LINK and see Section J (Reporting Requirement) which starts on page 35 or contact your tax professional.