how to report insurance benefits

by Ana
(Miami, FL, USA)

How should insurance benefits for pastors (health, dental, vision, health savings accounts, retirement, life insurance, disability insurance) be reported in the 941 & W2 forms? Are they considered income? Are they tax free or not? If they're not all treated the same way, which ones are tax free and which ones are not?

Comments for how to report insurance benefits

Click here to add your own comments

Taxable Benefits
by: Vickey

It all depends on how the plans are set up. For example, payments on life insurance premiums on a policy where the church is NOT the beneficiary would be a taxable fringe benefit.

Please check with a knowledgeable CPA in your area or contact Bill O'Connell, CPA from Tell him Vickey sent you:)

Not sure how much a CPA consultation would cost, but I can promise you it would be worth every penny.

Payroll issues such as this one is the number one reason churches get in trouble with the IRS.

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.