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What are the benefits of offering HRAs to my employees?

HRAs allow employers to provide pre-tax funds to employees to pay for medical expenses on an as-needed basis.

  • HRAs are considered tax-free fringe benefits, not wage or salary compensation. Employers don't have to pay taxes on the HRA funds provided to employees.
  • HRA funds are tax-free for employees.

Note: Zenefits is not accepting new HRA clients.

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