Small Employer Health Care Tax Credit may benefit some small churches

An important reminder - May 15 is the deadline to file to receive the Small Business Health Care Tax Credit which has the potential of benefitting many small churches.

In February 2011, the EPC Benefits Director, Michael Leighton, sent the following advisory:

Greetings in the Name of our Savior,

The Patient Protection and Affordable Care Act (PPACA) established a small business health care tax credit (Tax Credit) as an incentive for small employers to provide health insurance coverage to their employees. As written, PPACA limited the Tax Credit to costs relating to “health insurance coverage.” Thus, it was initially unclear as to whether small employers that participated in self-funded church plans were eligible for the Tax Credit. Recently, however, the Internal Revenue Service (IRS) issued guidance that specifically indicates local churches and small employers can qualify for the Tax Credit even if they obtain coverage through their denomination’s self-funded health care plan.

Because of the complexities associated with the credit, the legal group associated with the Church Benefits Association, in which the EPC is a participant, prepared a summary of the Tax Credit provisions.

For more information:

• Download the Church Benefits Association document to see if your church may be eligible.
• Watch Richard Hammar's video or purchase his article from Church Finance Today.