Revenue Procedure 2019-32

Revenue Procedure 2019-32 provides guidance to employers on the tax treatment and reporting requirements for qualified small employer health reimbursement arrangements (QSEHRAs). These are employer-funded health benefits that small businesses can offer employees instead of traditional health insurance, allowing employees to purchase coverage and be reimbursed tax-free. The procedure clarifies how to administer QSEHRAs, including limits on reimbursements and the importance of prior IRS notice. It aims to ensure employers and employees understand compliance obligations, making it easier for small businesses to provide health benefits while adhering to IRS rules.