Are health insurance premiums paid by our minister pre-tax?

by Peggy
(Everett, Washington)

We pay 50% of the health insurance premiums for our minister. I know that this is a non-taxable benefit to him. We withhold the other 50% of the premium from his salary. Is this amount pre-tax?

Comments for Are health insurance premiums paid by our minister pre-tax?

Click here to add your own comments

Jul 02, 2017

Insurance premiums pre-tax?
by: Bill OConnell

Your compensation structure is likely costing your pastor more income tax than is necessary.

If this is a solo pastor plan, it should all be paid by the church and reduce the salary by that 50%. The church spends the same cash, and pastor has a smaller box 1 on the W2 form.

If there are others on the plan look into a tax free QSEHRA.

Call my office at 617-921-9321 to discuss

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Fringe Benefits.

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

Contact Me!

Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church!

Click here for more details!

Use coupon code "FCA" for 10% discount!