IRS Mileage Rate
The IRS business mileage rate for 2015 has just been released and is 57.5 cents per mile

2014-2015 Medical expenses – tax treatment
The basic principle is that payment for a group healthcare plan is a non-taxable benefit; the payment or reimbursement of individual insurance is taxable.  This is a major change from previous years and the potential penalties are up to $100 per day per person affected. This change begins with 2014. There are some exceptions:

Type of Insurance

Tax Treatment

Notes

Group Health Insurance Plan

Non-taxable

GuideStone insurance

Non-taxable

Even if only one employee; group plan of Southern Baptists

Payment of individual plan

taxable

Payment of individual plan with only one FT employee

Not taxable – see note below

IRS notes exceptions of groups less than two.  See note below

Reimbursement of individual plan through the govt. exchange

Taxable

Tax credit and/or subsidies are received from the government when signing up

Other information

Health Reimbursement Arrangement

Non-taxable

Can only be offered in conjunction with a group plan; never as a stand-alone apart from insurance. Requires a properly written plan available to all employees who work 30 hours per week or more. Plans from previous years may not be valid now.

Groups fewer than two:  I have received conflicting information from 2 trusted sources (CPAs and attorneys)  One says that groups fewer than two refer to retirement health plans.  The other says that this can be done and treated as a benefit.  Health and Human Services has been requested to clarify and they have not done so.

Here are some excellent resources:

Department of Labor: http://www.dol.gov/ebsa/newsroom/tr13-03.html

GuideStone: Reimbursement Vehicles and the ACA: http://www.guidestoneinsurance.org/HealthcareReform2/ReimbursementVehicles

State Missionary Lee Wright serves Alabama Baptists as the Church Compensation coordinator. He may be contacted at lwright@alsbom.org, direct at 334-613-2241 or toll free at 1-800-264-1225, ext. 241.

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Lee Wright

State Missionary Lee Wright has been employed by the State Board of Missions since 2003 and is currently the coordinator of Church Compensation Services.
Lee and his wife, Linette, are members at Heritage Baptist Church, Montgomery. They have two daughters.
Lee Wright
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