Group plans require minimum participation. Most restaurant teams — part-timers, tipped workers, high-turnover staff — can't meet it. ICHRA gives every eligible employee a health allowance they actually use. Talk to a licensed agent — free.
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Between part-timers, seasonal workers, and tipped employees who waive coverage, small restaurants almost never qualify for a group plan. ICHRA has no participation requirement.
Restaurant group plans renew at 12–20% increases even in years with zero major claims. ICHRA locks your cost at whatever you decide to contribute — full stop.
Restaurant turnover is 70%+ nationally. ICHRA doesn't require plan changes every time someone starts or leaves — the allowance simply stops when they do.
Offer different amounts to full-time staff, part-time staff, and managers. Fixed cost per class. No group plan required.
Employees pick any ACA-compliant individual plan in their state's Marketplace — whatever fits their family situation and budget.
Employees submit premium receipts. You reimburse up to the allowance, tax-free. Fully deductible as a business expense.
When an employee leaves, their allowance stops. No plan changes, no carrier calls, no admin headache. It just works.
Can a restaurant offer ICHRA to tipped and part-time employees?
Yes. ICHRA has no participation minimums, so you can offer it to any eligible class of W-2 employees — including part-time servers, tipped staff, and kitchen workers. You define the classes (e.g., full-time vs. part-time) and set different allowance amounts per class. Tipped employees who receive ICHRA reimbursements get them tax-free, unlike a cash stipend which is taxable.
How does restaurant employee turnover affect ICHRA administration?
ICHRA actually simplifies high-turnover administration. When an employee leaves, their allowance eligibility ends — there's no carrier call, no plan change, no COBRA coordination beyond standard notification requirements. When a new employee hits their waiting period (you set this, typically 30–90 days), they become eligible and start shopping on their own. The plan itself never changes; only who's eligible changes.
Can a restaurant owner include themselves in the ICHRA?
It depends on your business structure. Sole proprietors and partners are not W-2 employees and cannot participate. S-corp owners who are more than 2% shareholders are also generally excluded. C-corp owners who are W-2 employees can participate. A licensed agent or tax advisor can confirm whether your ownership structure qualifies.
Does ICHRA work if a restaurant only has 5 or 6 employees?
Yes. There is no minimum employee count for ICHRA. A restaurant with 2 full-time W-2 employees can offer ICHRA just as legitimately as one with 200. The benefit scales from the smallest operation to a regional chain. The setup process is the same regardless of headcount.