{"id":308,"date":"2013-08-05T06:51:00","date_gmt":"2013-08-05T10:51:00","guid":{"rendered":"http:\/\/www.hnetalk.com\/Employer\/?p=308"},"modified":"2013-08-05T06:51:00","modified_gmt":"2013-08-05T10:51:00","slug":"flexible-spending-accounts-fsas-and-health-reimbursement-accounts-hras-frequently-asked-questions-faqs","status":"publish","type":"post","link":"http:\/\/hnetalk.com\/employer\/2013\/08\/05\/flexible-spending-accounts-fsas-and-health-reimbursement-accounts-hras-frequently-asked-questions-faqs\/","title":{"rendered":"Flexible Spending Accounts (FSAs)  and  Health Reimbursement Accounts (HRAs)  Frequently Asked Questions (FAQs)"},"content":{"rendered":"<p style=\"text-align: left;\" align=\"center\"><strong><span style=\"line-height: 1.4em;\">Q: Can owners of C-Corporations (any corporation that, under United States federal income tax law, is taxed separately from its owners) and their families participate in an FSA or an HRA?<\/span><\/strong><\/p>\n<p>A: Yes, they are considered to be W-2 common law employees. However, for an FSA, there may be limits based on discrimination testing requirements.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Q: I\u2019m part-owner of a company and have a partner. Are we eligible to participate in an FSA and an HRA?<\/strong><\/p>\n<p>A: No, sole proprietors and partners are not considered W-2 common law employees and are not eligible to participate in an FSA or an HRA.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Q: What types of business entities are not eligible to participate in FSAs or HRAs?\u00a0<\/strong><\/p>\n<p>A: Besides sole proprietors and partnerships, anyone who is more than a 2 percent \u00a0owner of an S-Corporation, Limited Liability Company (LLC), or Limited Liability Partnership (LLP) is not considered a W-2 common law employee. For tax purposes, these individuals are treated as self-employed.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Q: Are Health Savings Accounts (HSAs) for business owners subject to the IRS regulations issued under Internal Revenue Code Sections 105 and 125?<\/strong><\/p>\n<p>A: No, any business entity owner may participate in an HSA as long as he or she participates in a qualified High-Deductible Health Plan (HDHP).<\/p>\n<p>&nbsp;<\/p>\n<p>These are general questions and answers; for more information, please refer to Internal Revenue Code Section 105 for HRAs and Section 125 for FSAs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Q: Can owners of C-Corporations (any corporation that, under United States federal income tax law, is taxed separately from its owners) and their families participate in an FSA or an HRA? A: Yes, they are considered to be W-2 common law employees. However, for an FSA, there may be limits based on discrimination testing requirements. 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