8820 / If a QSEHRA does not cover all of an employee’s health insurance premium, can the remaining balance be paid with pre-tax money?

Planning Point: While allowing an after-tax payroll deduction as a means for covering the remainder of any health insurance policy premium cost is technically permitted, employers must be careful to ensure that they are not endorsing any particular health insurance policy or carrier (in order to avoid the conclusion that the employer is sponsoring a group health plan).

Self-employed individuals are not allowed a deduction for any month in which a family member is provided a QSEHRA that would pay or reimburse premiums or medical expenses of the self-employed individual.