On February 12, 2015, the ECFA conducted a webinar Healthcare Update for Small Churches and Ministries with Allison Gardner, partner and Danny Miller, nonprofit/church benefits attorney – both are healthcare experts with the law firm of Connor & Winters, LLP.

The purpose of this webinar was to present highly focused information on the healthcare reimbursement aspects of the Affordable Care Act (ACA) – what works, what doesn't work and what we don't know (as of the date of the webinar).

For decades, churches and ministries have reimbursed employees, on a tax-free basis, for health insurance coverage secured by the employees.

When the ACA guidance was initially issued relating to healthcare reimbursement plans, it was clear that the reimbursement of healthcare insurance premiums would trigger the excise tax. However, it was believed that if the employer treated the reimbursement of the premiums as taxable compensation to the employee, there would be no excise tax assessed to the employer.

Now, based on more recent guidance, it is clear that even if the reimbursements are considered taxable compensation, the penalties are applicable. And, the penalties can be enormous—up to of $36,500 per year ($100 per day) for each employee affected.

Click here to access the original webinar. You will need to login to your ECFA account to view the webinar recording. If you don't have an ECFA account, click here.

Click here to view the webinar PowerPoint slides

Click here to view the Healthcare Reimbursements Resource eBook