It's that time of year again for certain employers and insurance companies to pay the "Patient Centered Outcomes Research Fee."
When examining whether an HRA is appropriate for a sole proprietor, it's important to look at cash flow, not just the pure tax savings.
Are HRAs always appropriate for sole proprietors? An HRA will almost always save on taxes, but maybe not as much as advertised.
Are HRAs always appropriate for sole proprietors? Usually, but not always.
Below I am re-publishing a blog post I wrote last July (with edits and updates) regarding the "Patient Centered Outcomes Trust Fund" fee that is assessed against employers who have health reimbursement arrangements (HRAs). The only change for this year is that the fee is now $2 per person (it was $1 per person last year). [...]