Go Back  British Expats > Living & Moving Abroad > USA
Reload this Page >

Any small employers here? Confused about HSA/HRA, 401(k)

Any small employers here? Confused about HSA/HRA, 401(k)

Old Mar 19th 2018, 11:47 am
  #1  
Just Joined
Thread Starter
 
Joined: Dec 2017
Posts: 29
vindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nice
Default Any small employers here? Confused about HSA/HRA, 401(k)

Hey everyone. Is anyone here a small employer?

We are a new US business and I am due to arrive in the US in April to get things started. We are looking at taking on an employee who has good healthcare with his current job at a big corporate and ideally wants it matched.

I've looked into group health policies to cover myself and co-director and the manager, and it wouldn't be terrible, but seems a bit complicated just for 3 of us right now.

I then came across the HRA, and thought this might be a reasonable solution, allowing us to make a defined contribution and keep things simple. Is there any downside to a QSEHRA? My understanding is we could offer, say, $300/mth for employee only and, say, $500/mth for an employee with family, no hassle and no policies? Does anyone have experience with these schemes?

Or we could go for a decent health policy for an employer cost of $200-300/mth. But then the employee is tied into the specific plan, right?

Or we get a bronze policy with an HSA. But is there any advantage to this vs a QSEHRA?

Then comes the other consideration - personal circumstances. What if I move back to the UK in a few years? If I had an HSA (or 401(k)) saving, would either be more tax efficient to draw down if I were back in the UK?

For simplicity, I am leaning towards doing a simple HRA and 401(k) savings. From a personal point of view, the HRA can contribute to my personal family policy and, depending on my situation with wife and baby (and future pregnancy/time off work, etc), seems more flexible. The 401(k) can be drawn down similarly to an HSA (but with a penalty) to pay for any unexpected costs, although I'd hope we can simply use our savings.

The HRA route also allows us to offer our manager a decent contribution to healthcare costs without having to take out a gold plated group insurance policy.

Any comments or suggestions based on your experience? I am finding US healthcare a bit of a minefield. Thank you.
vindico is offline  
Old Mar 19th 2018, 1:05 pm
  #2  
Forum Regular
 
Joined: Mar 2005
Location: Boston, MA
Posts: 42
daisy is a jewel in the roughdaisy is a jewel in the roughdaisy is a jewel in the roughdaisy is a jewel in the roughdaisy is a jewel in the rough
Default Re: Any small employers here? Confused about HSA/HRA, 401(k)

Your other option is to use a PEO such as TriNet. They will handle all your payroll, file your federal/state employment taxes, and handle your healthcare. You can even set up a 401K.

They are not cheap, but they are worth a look. You will get some of your money back because you won't be spending your time dealing with a lot of this stuff.

For the record, I am not an employee of TriNet but a happy user. https://www.trinet.com/

You could also try ADP.
daisy is offline  
Old Mar 19th 2018, 3:28 pm
  #3  
Just Joined
Thread Starter
 
Joined: Dec 2017
Posts: 29
vindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nice
Default Re: Any small employers here? Confused about HSA/HRA, 401(k)

Thank you. I am familiar with ADP but had not heard of TriNet. I will take a look.
vindico is offline  
Old Mar 19th 2018, 3:55 pm
  #4  
Lost in BE Cyberspace
 
Boiler's Avatar
 
Joined: Mar 2004
Location: Colorado
Posts: 33,360
Boiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond repute
Default Re: Any small employers here? Confused about HSA/HRA, 401(k)

The numbers you mentioned seem very low.
Boiler is offline  
Old Mar 19th 2018, 4:16 pm
  #5  
Just Joined
Thread Starter
 
Joined: Dec 2017
Posts: 29
vindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nicevindico is just really nice
Default Re: Any small employers here? Confused about HSA/HRA, 401(k)

Originally Posted by Boiler View Post
The numbers you mentioned seem very low.
Low? How so?

From what i could see a group health policy with employer paying 50%-70% would amount to an employer contribution of $250-300 per employee per month. So I was then assuming that a similar or slightly higher amount could be offered via an HRA. But that is a figure we can choose right?
vindico is offline  
Old Mar 19th 2018, 4:20 pm
  #6  
Lost in BE Cyberspace
 
Boiler's Avatar
 
Joined: Mar 2004
Location: Colorado
Posts: 33,360
Boiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond reputeBoiler has a reputation beyond repute
Default Re: Any small employers here? Confused about HSA/HRA, 401(k)

This is a few years old but I remember seeing that the average wage for those working at my County was $20,000 but the benefit costs doubled it.

$300 does not buy much for an individual, what if they have a family?
Boiler is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service - Do Not Sell My Personal Information -

Copyright © 2018 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.