On December 13, 2016, President Obama signed the 21st Century Cures Act, which goes into effect on January 1, 2017. This law allows small churches to set up a QSEHRA to contribute toward your employees’ healthcare costs. This plan is now available through our website. Click Here to Order.
If your church (with less than 50 employees) does not offer a group health plan to any of your employees, then you can set up QSEHRA plan to offer a pre-tax benefits for insurance premiums and health expenses to all eligible employees.
The maximum individual amount is $4,950, and maximum for an employee and family contribution is $10,000. The annual maximum must be prorated for employees who are not working a full year, meaning if someone starts mid-year you cannot bump up their monthly contribution amounts to allow them to receive the full yearly amount. The cost of the QSEHRA benefit must be entirely covered by the church. Let us know if you have any additional questions.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
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