Wednesday, September 2, 2015

$100/Day Penalty for Health Care Reimbursements

Church Leaders:  If you are not already aware of this issue, here is another reminder.  The IRS is imposing fines of $100 per day to churches who are continuing to reimburse or pay directly the premium for an employee's health insurance.  For those churches who provide health share ministries such as Samaritan Ministries for their employees, it is unclear whether or not those fines apply.  However, due to the massive penalties that can accrue, I would recommend that all churches cease that practice until there is more clarity.  Dr. Hammar addresses the issues involved in the video below.  One alternative that he suggests is to simply increase the salary of the employee by the amount of the premium, although you cannot tell them that the increase must be used for health insurance. 

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