MUST HAVE REFERENCE GUIDE

Site Map or Site Search

CHURCH ACCOUNTING PACKAGE

Church Paying Medical Expenses Considered Income?

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?

Click here to add your own comments

Jun 11, 2010
 Individual Health Insurance Plan
by: Anonymous

Are the Individual Health Insurance premiums which we pay on his behalf not considered taxable income even though since it is an individual plan instead of a group plan it is under his name?

Vickey's reply
I am not sure, but I know where you can probably find out :-)
There is a very good site that has some experts (CPAs and tax attorneys) that answer questions such as yours. There is also a category titled insurance that you can either search their questions and answers section or ask the experts yourself. It is located on this page.
Jun 14, 2010
 Thanks!
by: Anonymous

Thanks for pointing me in the right direction!

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 Church Accounting FAQs.

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.