Church Paying Medical Expenses Considered Income?

In addition to paying the premium on our Pastor's Individual insurance plan our church has decided to cover certain additional medical and dental expenses not covered by the plan. If we pay these bills directly would this have to be considered part of our Pastor's salary?

Answer

You can pay or reimburse medical expenses for your pastor if they are covered under an employer-sponsored plan such as a HSA (Health Savings Account) or a FSA (Flexible Spending Account) or a Cafeteria Plan, etc.

However, these plans are difficult to set up properly. You should consult a CPA or tax attorney to set up such a plan.

Hope this helps,



Church Accounting Package

www.freechurchaccounting.com


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