CPAs know very well the frustration small business owners face when it comes to offering health benefits. Rising costs, compliance red tape, and rigid group plan rules make it feel nearly impossible—especially for teams with fewer than 10 employees.
You’ve probably had brokers pitch group plans as “small business friendly.” Until they’re not.
That’s why CPAs are starting to recommend a better option: ICHRA, or Individual Coverage Health Reimbursement Arrangement. It’s a pre-tax solution that gives small businesses cost control, keeps things compliant, and saves your clients (and their employees) real money.
The Evolving Role of the CPA
Today’s CPAs aren’t just number crunchers. You’re advisors, problem-solvers, and strategic partners. You help clients manage cash flow, payroll, tax strategy. You also suggest smart-saving solutions like…health benefits.
When a small business wants to offer coverage, or switch from the coverage they already have, they often seek out their CPA’s advice on their options. ICHRA gives you a powerful, IRS-approved way to bring a unique solution to the table (especially when it feels like nothing else is working.)
What Is ICHRA (And Why Does It Matter)?
ICHRA lets employers reimburse employees tax-free for individual health insurance they choose themselves. Employers set the budget. Employees pick the plan. Everyone wins.
It’s simple, predictable, and flexible which is a perfect combo for small businesses that don’t want to commit to a pricey group plan or have the time to set it up.
3 Reasons CPAs Love ICHRA: Taxes, Predictability, Compliance
Let’s keep this super simple. From a CPA’s perspective, ICHRA hits the trifecta:
- Tax-efficient – No income or payroll taxes on reimbursements. Employer contributions are fully deductible.
- Budget-friendly – Fixed monthly contributions give clients cost control with zero premium surprises.
- Compliant – To access ICHRA benefits, health insurance must meet the ACA standards which means employees are getting quality coverage but also a health plan they choose
Instead of watching clients burn money on taxable stipends or underused (and expensive) group plans, ICHRA lets small business owners and non-profits offer a smarter path forward.
Ideal for the "Smallest" Small Businesses
Offering health insurance has always been tough for smaller employers, but it’s gotten even harder.
Premiums keep rising. Participation minimums are hard to meet when your team has fewer than 10 people. And many carriers simply won’t offer group coverage to businesses that small, or if they do, the plans are expensive, inflexible, and confusing.
Small businesses also don’t have HR teams or spare hours to navigate enrollment, plan renewals, broker relationships, or endless compliance paperwork. They’re too busy running the business.
That’s why ICHRA is such a game-changer for this segment. It works especially well for clients who:
- Are hiring
- Are looking for ways to retain current talent
- Can’t meet the minimum participation minimum usually 70% required for traditional group health insurance
- Are frustrated by the cost of their existing group health plan
- Are currently offering taxable stipends—or nothing at all—and want a more compliant, tax-efficient option
- Want flexibility to offer different benefits to different types of employees (full-time, part-time, etc.)
With ICHRA, small employers finally have a way to stay competitive in a tough labor market—without overextending their budget or admin bandwidth. They can offer real benefits that attract and retain talent, all while keeping control over what they spend.
And with the right partner (hey, that’s us), it’s easy to implement and manage—no HR department required.
StretchDollar Makes Health Benefits Easy Peasy
We built StretchDollar to take the complexity out of offering benefits with ICHRA. It’s a simple platform that handles the setup, compliance, and employee experience—so your clients (and you) don’t have to.
We even have health insurance brokers in-house to guide employees who need extra assistance find a health plan.
Here’s what you get with StretchDollar:
- Easy onboarding for small businesses
- Built-in compliance and tax reporting
- Seamless coordination with payroll
- Friendly support every step of the way
And the best part? StretchDollar is the most affordable ICHRA platform—no hidden fees, no long-term contracts.
Bottom line: ICHRAs are a perfect fit for most small (but mighty) businesses. After all, wouldn’t you rather help your clients stretch their dollars—not their patience?
