In addition to paying the premium on our Pastor's Individual insurance plan our church has decided to cover certain additional medical and dental expenses not covered by the plan. If we pay these bills directly would this have to be considered part of our Pastor's salary?
Answer
You can pay or reimburse medical expenses for your pastor if they are covered under an employer-sponsored plan such as a HSA (Health Savings Account) or a FSA (Flexible Spending Account) or a Cafeteria Plan, etc.
However, these plans are difficult to set up properly. You should consult a CPA or tax attorney to set up such a plan.
Hope this helps,
Church Accounting Package
www.freechurchaccounting.com
Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!
Comments for Church Paying Medical Expenses Considered Income?
|
||
|
||
|
||
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 =)