Minister's Insurance Taxable

[Mt Olive Church]

What is the best way to handle the new tax regulations on minister's insurance. When we did our budget for 2015 we didn't know about the change in minister's health insurance being taxable. We put an amount in Employment Benefits for the insurance to be paid from for 2015. That amount needs to be included in his wages now. Should I just take that amount from that line item and include it in his payroll module or should the budget be amended? This has been very confusing and your help would be much appreciated.

[NeilZ]

What is the best way to handle the new tax regulations on minister's insurance. When we did our budget for 2015 we didn't know about the change in minister's health insurance being taxable. We put an amount in Employment Benefits for the insurance to be paid from for 2015. That amount needs to be included in his wages now. Should I just take that amount from that line item and include it in his payroll module or should the budget be amended? This has been very confusing and your help would be much appreciated.

It depends on if the pastor is being covered by a denomination wide type of required group health insurance, or an individual plan. A required health insurance plan that is sponsored (or self-insured) by a denomination is not considered a taxable benefit.

However, an individual plan, paid by the church is. This should be considered a taxable benefit.

A similar question was brought up earlier, and here is a thread that covers it:

viewtopic.php?f=3&t=11158&p=35239

[Matt]

vshirley--just as a FYI I did receive the email you sent me regarding this topic. I tried to reply back but your email came back undeliverable. Can you check the email address on your PowerChurch user profile to make sure it is correct?

[Mt Olive Church]

vshirley--just as a FYI I did receive the email you sent me regarding this topic. I tried to reply back but your email came back undeliverable. Can you check the email address on your PowerChurch user profile to make sure it is correct?

Matt, I have changed my email. Look forward to your reply.

Thanks,
Vicki