Prior to the enactment of the Affordable Care Act (ACA), the tax code contained a number of tax-favored options for covering employees’ health care costs, including employer payment plans (EPPs). EPPs became popular among churches for helping ministers and staff members.

But since EPPs typically did not incorporate two types of market reforms mandated by the ACA, they became illegal after the ACA took effect. Employers that continued to use EPPs faced staggering penalties.

However, new rules issued by the US Department of Labor, US Department of Health and Human Services, and US Department of the Treasury may bring much-desired relief to employers, including churches, that suffered after the ACA made EPPs illegal.

As Senior Editor Richard Hammar explains in this new article for Church Law & Tax members, these new rules “may fundamentally transform the way many employers assist employees with their health care costs.” Find out how two significant developments with these changes help partially restore EPPs—and how churches, ministers, and staff members can benefit.

Also this week:

• Senior Editor Richard Hammar has already made more than 75 updates to the 2020 Church & Clergy Tax Guide—make sure you preorder your copy now. (Are you a Church Law & Tax Advantage Member? Good news—you automatically receive the tax guide when it ships.)
• Churches and nonprofits that follow generally accepted accounting principles (GAAP) for external financial reporting, take note: the new lease accounting reporting standard has been deferred one year.
• In Case You Missed It: The IRS has released a proposed revision for Form W-4 for 2020.

The Lord bless you and keep you,