Are health insurance premiums paid by our minister pre-tax?

by Peggy
(Everett, Washington)

We pay 50% of the health insurance premiums for our minister. I know that this is a non-taxable benefit to him. We withhold the other 50% of the premium from his salary. Is this amount pre-tax?

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Insurance premiums pre-tax?
by: Bill OConnell

Your compensation structure is likely costing your pastor more income tax than is necessary.

If this is a solo pastor plan, it should all be paid by the church and reduce the salary by that 50%. The church spends the same cash, and pastor has a smaller box 1 on the W2 form.

If there are others on the plan look into a tax free QSEHRA.

Call my office at 617-921-9321 to discuss

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