Due to rising Health Insurance costs, employers must search for ways to reduce their—as well as their employees’—costs, as much as possible.

Luckily, there are flexible, affordable options employers can use to cover employee healthcare costs, including reimbursing employees with a taxable stipend or a Health reimbursement arrangement (HRA). However, there are guidelines for both that employers must follow in order to reimburse their employees compliantly.

In this article, we’ll go over taxable stipends and HRAs and how these two options can work for your organization.