Sample Employer Plans: Tax-Smart Tools for Small Business Owners
- Viktoriya Barsukova, EA, MBA
- Oct 27
- 4 min read
Smart business owners know that well-structured employer plans can transform personal or employee expenses into legitimate business deductions — saving money and rewarding both owners and staff.
From health reimbursements to accountable expense plans and educational benefits, these programs allow you to deduct qualified expenses while providing tax-free benefits to employees.
Below are several IRS-recognized employer plan options — complete with sample plan documents and links to help you implement them properly.
Overview
The QSEHRA was (and remains) a solid option for small employers, but the new ICHRA offers more flexibility — and it’s also available to large employers.
You can now reimburse employees for some or all of their individually purchased insurance premiums, in addition to other qualified medical costs, up to any amount you choose.
Plus, there’s no limitation on rollover amounts or on the size of employer that can participate.
You even have the option of offering traditional group health insurance and the new ICHRA, as long as you don’t offer both to the same class of employees.
Tools for Your Use
To implement your plan, use the ICHRA plan documents linked below in Word format:
ICHRA Model Attestation — Word Document
ICHRA Model Notice — Word Document
To help employees submit reimbursement requests to the corporation
To learn more about how you can benefit from an ICHRA plan, click here.
Overview
The 105-HRA plan turns personal medical expenses into business deductions.
The 105-HRA is the medical reimbursement plan you likely want to use if:
(a) you report your business income and expenses on Schedule C, E, or F of your Form 1040, and
(b) you can make your spouse your one and only eligible employee.
If you are single and operate your business as a C corporation, and you are the one and only eligible employee of your corporation, the 105-HRA is the medical reimbursement plan for you.
Sample Plan
To implement your plan, use the sample plan linked below in Word format:
105-HRA Expense Submissions
Use this 105-HRA Expense Submission Report to document medical expenses.
To learn more about how you can benefit from a 105-HRA plan, click here.
Accountable Plan (2018–2025)
Overview
When you reimburse employees for business expenses, you must follow accountable plan rules. Without a proper plan, the IRS treats reimbursements as wages for tax purposes.
If you operate your business as an S or C corporation, you are an employee of the corporation. That means you and your corporation must follow accountable plan rules whenever you incur expenses on behalf of the business.
Although tax law doesn’t require a written plan, having one in writing helps keep your records clear, protects your deductions, and ensures IRS compliance.
Tools for Your Use
To implement your plan, use the sample accountable plan linked below in Word format:
Sample Accountable Plan — Word Document
To learn more about how you can benefit from an accountable plan, click here.
Overview
Do you have a college-bound or enrolled student?
Create a tax-favored educational assistance program under Section 127. Hire your child age 21 or older and extend the education benefit to all your employees, including your employee-child.
You may deduct up to $5,250 per year, per employee for tuition, books, and fees.
Tools for Your Use
To create the benefit, you’ll need a Section 127 plan. Use the sample plan below:Sample Section 127 Plan — PDF
Sample Section 127 Plan — Word Document
For more tax strategies to save on college education costs, cleck here
QSEHRA Plan (Qualified Small Employer HRA)
Overview
As of January 1, 2017, small employers can install a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) to help employees pay for their health insurance and other medical expenses—without facing the $100-a-day IRS penalty ($36,500 per employee per year).
With this plan, a small business can reimburse up to $5,850 for an individual and up to $11,800 for a family each year for qualified expenses. (2025 numbers)
Tools for Your Use
To implement your plan, use the sample plan linked below in Word format:
2023 Sample QSEHRA Plan — Word Document
Tools for Your Employees’ Use
To help employees submit reimbursement requests to the corporation
To learn more about how you can benefit from a QSEHRA plan, cleck here
Overview
A great way to honor your employees is to give them a meaningful present or award.
The tax code includes a special carveout for employee achievement awards. This allows you to deduct the cost of the award — and it’s tax-free to the employee.
In general, tax law limits the deduction for awards to $400 per employee per year, but increases the limit to $1,600 per employee if the award is given through a written “qualified plan” that does not favor highly compensated employees.
Tools for Your Use
To implement your plan, use the sample plan linked below:
Sample Qualified Plan for Employee Achievement Award Program — Word Document
To learn more about how you can benefit from this plan, click here.
All links reference Bradford Tax Institute source material for compliance and implementation accuracy.
Tax-Smart Tools for Small Business Owners:
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