Can different employees get different contribution amounts?
Yes—but only when employees are in different eligible employee groups. You can’t pick and choose different allowance amounts for employees within the same class/group, as that can create nondiscrimination issues.
If employees are separated into distinct groups, each group can have its own monthly allowance. The ICHRA quoting tool helps walk you through setting this up.
Common groups available in the ICHRA portal include:
- Full-Time
- Salaried
- Hourly
- Part-Time
You can also choose to offer additional amounts for dependents (often called family scaling).
Example:
Tom and Jerry are both Full-Time employees, so they would need to receive the same allowance. But their buddy Bugs Bunny is classified as Hourly, so he could receive a different amount.