Insurance Payment Reimbursements

by Secretary
(Naples, Florida)

Because of the new law that went into effect for insurance payments, the church can no longer pay the pastor's medical insurance unless it's a group insurance.

We were previously paying his insurance through ACH directly from the church's checking acct. Because this is no longer legal, we had to find another way to reimburse the pastor.

It was suggested (through an online tax website) that his salary be raised to compensate him for this so that he could them pay the premiums from there.

By doing that, he would have to pay more in income taxes at the end of the year. The church opted, instead, to send this as a contribution to his retirement account. Would this be 'legal' to do so that he doesn't pay that extra fee in income taxes each year?

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