MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

Can a pastor receive a medical allowance?

If a pastor was on a church policy being paid 100% by the church and then married and was added to his wife's policy, can or should the church pay him the premium being saved as a medical allowance?

Comments for Can a pastor receive a medical allowance?

Click here to add your own comments

Jun 25, 2014
 medical allowance?
by: Lewis in NC

It would be very nice for the church not to lower the pastor's benefits if it can continue to afford this expense in the budget.
Jun 25, 2014
 Taxable Income
by: Vickey

There is a firestorm of controversy going on presently regarding this very issue.

Before Obamacare became law you could have done this under a qualified HRA, but now it is taxable income.

That is not saying you cannot give him a "medical allowance" just be aware that the amount you give him will have to be included in box 1 of his W-2.

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.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.