QSEHRA is a major tax saving opportunity to our church and non-profit partners throughout the country.
This new provision is a monumental tax saving opportunity for church staff throughout the United States. New tax law makes it available beginning 01/01/2017.
Church staff (pastors) and Non-Profit staff who are eligible for a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA) can save $$ thousands $$ on income tax return. A married pastor in the Social Security System can save $3,000 by establishing a QSEHRA plan with Virtual CPA Productions.
More About QSEHRA
On December 16, 2016, the federal government passed a new provision in the 21st Century Cures Act allowing a small employer to reimburse employees for individual health insurance premiums. This applies to policies purchased both on and off the federal insurance marketplace. This also applies to policies that receive or do not receive federal advanced premium tax credits. This also applies to both single and family coverage. NOTE: Pastor - if you are paying for an individual health plan, you will qualify for QSEHRA, and begin saving thousands of dollars on your tax return.
Implementing a QSEHRA is the easiest thing you will probably ever do as it relates to the IRS. We have prepared all of the documents needed to be compliant in creating this program. You will simply need to:
- Sign up for our QSEHRA program for just $149
- Login to your account and download all related pdfs
- Fill them out and submit them back to us
- We provide you with a legal summary plan document that will be automatically updated every new year
It is truly that simple
Of course, there are some rules to follow:
- You must be an organization of less than 50 full time employees
- You cannot sponsor a group health plan
- You must determine eligibility of employees
- The employer can allow eligibility to any employee
- The employee cannot be eligible for a group sponsored plan with your organization or a spouse's employer
- You must execute the necessary plan implementation documents
- Reimburse employees for documented premium and medical expenses
We will provide you with a legal summary plan document that will be automatically updated every year.
What is the benefit? Tax savings! It works like this. Your organization can reimburse employees for up to $4,950 per single and $10,000 per family for individually purchased health insurance or unreimbursed medical expenses. Until the 21st Century Cures Act was passed, reimbursement for individual premiums was prohibited pre-tax. Beginning 01/01/2017, it is allowable to reimburse employee premiums up to the allowed amounts on a pre-tax basis.