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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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