Church is required to provide health insurance to employees (and pastors) by the diocese. Does ACA require group coverage to be provided to the entire family of these employees (assuming the spouse/children do not have coverage elsewhere?) The diocese's benefit handbook does not say the church is required to provide insurance to anyone else other than their employee. However, that option is available if they wish to pay the premium for it (horrendously expensive.) If the employee/pastor elects not to cover his family, can his spouse & dependent children then go to the marketplace to get coverage?
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My understanding is if the workplace makes it available for the whole family they can't get the subsidy but they can use the marketplace. So without the subsidy price may be too high. Even at the marketplace or healthcare.gov one and the sameOriginally posted by Burke View Post -
Only if the church is a "large employer" (100 or more employees for 2015, 50 or more for years after that). Then the employer needs to offer insurance to the employees and their "dependents" (not a spouse).Originally posted by Burke View Post
If the church is not a "large employer", no there are no requirements.
If the employee/pastor elects not to cover his family, can his spouse & dependent children then go to the marketplace to get coverage?
They can get GET coverage anywhere there want. However, if the employer offers family insurance, in order to qualify for the Premium Tax Credit, the cost of employer insurance for ONLY the employee must be 9.5% or more of the employee's Household income.Comment
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Church is small and they are the ones who have to pay the premium. However, the diocese is the one which requires all churches under its dominion to offer health coverage, pension plans, etc, etc., and who has negotiated the group plan and provider.
Anyway, if the church pays the ENTIRE premium for family health coverage, does that change anything? (As far as the marketplace goes. Would the TP be eligible to decline and go there?) It certainly enters into salary negotiations, since the church can only afford so much. If they pay the whole health insurance cost, then there is only so much left over for salary. It does not make sense (for the pastor) to decrease the health insurance cost and increase the salary. That only moves a tax-free benefit to taxable salary. Same money out of pocket to the church.
But if he could get it cheaper somewhere else.......Comment
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Originally posted by Burke View Post
To me, that sounds like a group plan through the diocese, and ALL of the employees from ALL of the churches might be counted towards determining if it is a "large employer" or not.
Anyway, if the church pays the ENTIRE premium for family health coverage, does that change anything? (As far as the marketplace goes. Would the TP be eligible to decline and go there?)
They can turn down the employer insurance and buy through the Marketplace, but they will NOT be eligible for the Premium Tax Credit.Comment
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Church Employee-high cost family coverage-8%??????
What about the "8%" cost exemption?Originally posted by TaxGuyBill View PostFriends double; family triple. Don't buy an audit for yourself. If someone has to go to jail make sure it is the client. Remember it is only taxes, nothing important.Comment
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For purposes of qualifying for the Premium Tax Credit, it's 9.5% for a SELF-ONLY plan.Originally posted by mastertaxguy View Post
Burke said "if the church pays the ENTIRE premium for family health coverage", so in that scenario the insurance is WAY less than 9.5% (it's free).Comment
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1. I agree. I think they would come under the large employer rules.Originally posted by TaxGuyBill View Post
2. Thanks. (The pastor is eligible to enroll for a less expensive plan that the one he has now, but it would mean a lot more out-of-pocket expense.) Not sure the marketplace would quote anything better which compares. The group offered is through Cigna.)Comment
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