Last year the US government passed a new tax law that gives aid to small organizations that provide medical insurance coverage to eligible employees, and which pay 50% or more of single coverage for those who are enrolled. This credit is available to churches . . . so keep reading.
We would like to help you determine if your church is eligible for this credit, which is based on withheld federal income and Medicare taxes. Look at the following three questions, and you can determine if you may be eligible. If you are unsure or need help in making this first decision, email me and we’ll help you figure it out.
One church expects to get a check from the IRS for over $3,000 – “found money” which can be used for all sorts of missions and ministries.
Here are the questions:
Answer them with regards to the year 2010. If you meet each of the requirements, you may be eligible for a cash refund.
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Did you pay health care premiums for any employees in 2010 and, if you did, were your payments at least 50% of single coverage for each employee getting insurance coverage?
- If yes, proceed.
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Did you have 25 or fewer employees in 2010 to whom you issued W-2’s?
- Most churches will easily answer “yes” to this. It’s actually based on “full-time equivalent” employees so, if you have over 25 employees, contact me to decide if you meet this test.
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Was the average wage paid in 2010 to employees (excluding wages paid to clergy) less than $50,000?
- If yes, proceed. If not, call me to discuss.
If you believe you may be eligible for the credit based on the above questions and answers, send me an email and I’ll send you more information. While there are some computations involved, we can help you calculate the credit and fill out the forms. If you are unsure, email me and we can help you to decide.
Paul Shackford, CFO
973-430-9983
pshackford@dioceseofnewark.org
