Health Insurance Payment

by Matt
(Sidney, MT)

I am a part of a small church. Both myself and the other pastor have private health insurance.

1) Are the health insurance costs considered benefits thus exempting them from the pastor self-employment taxes?

2) Can the church pay the health insurance premium for both myself and the other pastor even though we don't have a group plan?

Know the answer? Face the same situation? Please post your answer or comment by using the "comment" link below. Thank you!

Comments for Health Insurance Payment

Click here to add your own comments

Apr 17, 2013
health benefits
by: Anonymous

I suggest your church set up an HRA check out IRS pubs 969 and 520.

Hope this helps

Jan 20, 2016
Small Churches health insurance for pastor
by: Doctor

Look closely, you will find that a church may reimburse a pastor for health insurance or pay for the health insurance where there is only one employee who is the pastor.

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 =)



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.