Using HRAs to Offer Health Insurance to 1099 Contractors

By PeopleKeep Team on June 18, 2012 at 7:50 AM

A common question we receive at PeopleKeep is: "Can I Offer a qualified small employer health reimbursement arrangement (QSEHRA), or Small Business HRA to 1099 Contractors?"

The answer is no. Because 1099 Contractors are self-employed individuals rather than common law employees, they aren't eligible for the QSEHRA.

Instead, 1099 Contractors can deduct the cost of health insurance expenses on Form 1040, line 29. 

The QSEHRA is a good fit for nearly all other employees, though, including full-time and part-time staff and some business owners.
Previous article
← History of flexible spending accounts (FSAs)
Next article
Health Reimbursement Arrangement HRA Rules →
The CEO's Guide to Evaluating Employee Health Insurance
PeopleKeep featured image

The CEO's Guide to Evaluating Employee Health Insurance

A guide for CEO's on evaluating employee health insurance. The 4 questions CEOs should ask about employee health insurance, and the 3 core employee health insurance options.

December 19, 2013 at 2:00 PM 3 min read
How to set up a qualified small employer HRA (QSEHRA)
How to set up a qualified small employer HRA (QSEHRA)

How to set up a qualified small employer HRA (QSEHRA)

Setting up a QSEHRA? Discover the steps to launch a qualified small employer HRA, from plan design to compliance and employee communication.

June 12, 2025 at 2:30 AM 6 min read
Ten-step checklist for hiring your first employee for your small business
Ten-step checklist for hiring your first employee for your small business

Ten-step checklist for hiring your first employee for your small business

If you’re new to the hiring process, finding your first employee can be daunting. Learn the ten steps to hiring your first employee with our checklist.

May 26, 2023 at 9:00 AM 6 min read