Thatch ICHRA (Individual Coverage Health Reimbursement Arrangement) allows employers to offer a tax-free monthly allowance that employees can use to pay for individual health insurance premiums and, if enabled, other qualified medical expenses.

This article guides clients on how they can activate Thatch integration to allow Thatch to manage the end-to-end ICHRA lifecycle, including plan shopping, onboarding, eligibility management, compliance, and employee support.

Payroll data is synced to Deel so reimbursements are reflected correctly as non-taxable benefits.

How to Activate the Thatch Integration

Log in to the Deel Admin Dashboard.
Navigate to Apps.
Locate Thatch and select Connect Thatch.
Select Continue, then Connect.
Return to the Thatch landing page and select Onboarding → Start.
Choose the legal entities you want to integrate and select Start Onboarding.
- You will be redirected to Thatch to complete authentication.

If you already have a Thatch account

If you do not have a Thatch account

You will be asked to provide basic information and a broker referral to Thatch will be initiated to support your setup.

Employee Sync and Invitations

Once the integration is complete, Deel will sync your employee roster to Thatch.
This sync creates employee profiles in Thatch, but does not automatically invite employees.
Employers control benefit eligibility and must invite employees manually from the Thatch Employer Dashboard.

To invite employees in Thatch:

Go to the Employer Dashboard in Thatch.
Select the checkbox next to the eligible employee(s).
Select Invite selected.

If an invitation link expires, you can resend it from the dashboard at any time.

Frequently Asked Questions

[ACCORDION] Do employees need to pay out of pocket and get reimbursed?

No. Employees receive a Thatch benefits card that can be used to pay directly for insurance premiums and qualified expenses.

[ACCORDION] What happens during a carrier renewal?

There are no traditional carrier renewals. Employers update their allowance annually, and employees can re-shop for plans or auto-renew with no action required.

[ACCORDION] How does Thatch handle compliance?

Thatch manages:

ICHRA and ACA compliance
Safe harbor calculations
Eligibility rules
Required employee notices

[/ACCORDION]

[ACCORDION] Can employers use Thatch without an HR team?

Yes. Thatch manages setup, compliance, employee onboarding, and ongoing support.

[ACCORDION] How is pricing calculated?

Only enrolled employees are included in per-employee-per-month (PEPM) pricing.
Dependents and waived employees do not incur additional cost.

[ACCORDION] What qualifies as a Qualified Medical Expense (QME)?

Qualified Medical Expenses include:

Health insurance premiums
IRS-approved medical expenses (such as doctor visits, prescriptions, and diagnostics)

Employers can choose:

QME-Off: Premiums only
QME-On: Premiums and medical expenses

Employees also have access to the Thatch Marketplace for additional services.

If an employee experiences a Qualifying Life Event (QLE), they remain eligible. Thatch updates allowances and reopens plan selection when applicable (for example, after a move, marriage, or the birth of a child).

Thatch ICHRA Integration for PEO

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