An HRA is a benefit that employees love. Each year, the employer contributes a specified dollar amount into each employee’s account. Those contributions are made up entirely of employer money – probably why employees like it so much! When an employee pays for qualified expenses and submits a claim, he or she is then reimbursed for that claim if there are still funds in their HRA account. HRA benefits are tax free to the employee, and the employer’s contributions are tax deductible.