IRS Announces More Church Audits Regarding ACA Compliance

Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.

Examination notices are expected to be sent out through the remainder of the year. While most ministries won’t be affected by these audits, church leaders should see this as an opportunity to double check whether their ministries are compliant.

What Parts of the Affordable Care Act Apply to My Ministry?

The most important point to understand is that churches and ministries are not specifically exempt from ACA requirements. There is a distinction in the ACA between large and small employers. Depending on the number of individuals your church or ministry employs, you will need to consider different requirements.

To determine your church’s exposure, read this article by Brotherhood Mutual that outlines some high-level conditions that large and small ministry employers should consider as they assess ACA requirements.

What If My Church Is Audited?

If your church is contacted by the IRS, then your leaders should work with a licensed tax professional who is experienced representing churches in exams conducted by the IRS.

Even if your church is not audited by the IRS, your church should audit itself for ACA compliance. Frank Sommerville, attorney and CPA, and editorial advisor for Church Law & Tax, recommends each church at least take the following two defensive steps:

  • Perform a self-audit or hire someone independently to conduct a compliance audit to verify compliance; and
  • If the church discovers noncompliance, then the church should immediately correct the problem areas.

MinistryWorks® by Brotherhood Mutual provides ACA reporting services for churches and related ministries. If you have questions about your church’s potential exposures, visit www.MinistryWorks.com or call 866.215.5540.

March 30, 2020
CARES Act: Churches Need to Apply Now
CARES Act: Churches Need to Apply Now

Some significant strides were made last week in the passing of the “Coronavirus Aid, Relief, and Economic Security Act” or the “CARES Act” which has specific relief outlays for 501(c)3 organizations. We are hopeful that this Act will provide much needed relief for the churches, schools, day cares, camps and other related ministries we serve.

March 6, 2020
Coronavirus and Your Ministry: Tips for Prevention
Coronavirus and Your Ministry: Tips for Prevention

As concern over the dangers associated with the spread of a new coronavirus, COVID-19, spreads, our agency and Brotherhood Mutual want to keep you informed and provide best practices for managing the spread of this and similar illnesses at your ministry.

January 29, 2020
Hosting a Game Day Bash? Brush Up on Copyright Basics
Hosting a Game Day Bash? Brush Up on Copyright Basics

The first Sunday in February is a big day for sports fans. In fact, many Americans view Super Bowl Sunday as a national holiday. Friends and families will gather this year to watch the big game, enjoy delicious snacks, and of course, critique the commercials that go along with game day.

Are You Covered If You're Injured Overseas?
Are You Covered If You're Injured Overseas?

Recently, we learned about two major overseas incidents involving pastors on mission trips. The first incident involved a pastor being hit by a motorcycle while running. The second was a bus accident involving two pastors. The runner and one of the two bus passengers sustained extensive injuries.

Tags: missions, insurance
October 16, 2019
Stolen Church Trailer Leads to New Life in Christ
Stolen Church Trailer Leads to New Life in Christ
IRS Announces More Church Audits Regarding ACA Compliance
IRS Announces More Church Audits Regarding ACA Compliance

Last month, the IRS announced that its initiating hundreds of church exams to test compliance with the Affordable Care Act (ACA). While many provisions only apply to churches with 50 or more full-time equivalent employees (FTEs), even smaller churches could potentially violate provisions applicable to health benefit plans with as few as 2 plan participants.

Tags: ACA, IRS
July 3, 2019
Celebrate Safely This Independence Day
Celebrate Safely This Independence Day

July 4th is synonymous with food, fun, and fireworks. If your church is planning an event this Independence Day, remember to keep a focus on safety, so that everyone can have fun.

Tags: firework safety
June 28, 2019
Insurance is one of those things we forget about until we need it
Insurance is one of those things we forget about until we need it

National Insurance Awareness Day falls on June 28 this year to remind people everywhere that insurance is vital to their companies and ministries.

Tags: cyber security, digital, protect, risk
June 24, 2019
June 23-29 is Lightning Safety Awareness Week
June 23-29 is Lightning Safety Awareness Week

Summertime across the country means barbecues, carnivals, sporting events, boating, hitting the beach and many other recreational activities. In short, summertime means a lot more people are spending time in the great outdoors. But summer is also the peak season for one of the nation's deadliest weather phenomena--lightning.

Tags: cyber security, digital, protect, risk
May 8, 2019
Protect Your People & Property During Hailstorms
Protect Your People & Property During Hailstorms

According to the National Oceanic Atmospheric Administration (NOAA), hail causes about $1 billion in damage to crops and property each year. Prepare your ministry and people for hail this season.

Tags: protect, hail, damages, property, weather emergency
April 9, 2019
Vehicle Registration Guidelines for Ministries
Vehicle Registration Guidelines for Ministries

Do you use commercial vehicles that transport more than 15 passengers or carry cargo from one state to another as part of your ministry? If so, you are required to register with the Federal Motor Carrier Safety Administration (FMCSA) and obtain a USDOT number.

Tags: vehicle safety, liability, auto insurance
March 25, 2019
March 25-29 is Severe Weather Preparedness Week in Nebraska
March 25-29 is Severe Weather Preparedness Week in Nebraska

As winter turns to spring, we’re also in for a turn in weather. Lightning, strong winds, flash flooding, hail, or tornadoes could quickly strike your ministry. The National Weather Service has designated March 25-29, 2019, as Severe Weather Preparedness Week in Nebraska.

Tags: protect, weather emergency, safety, storms
September 21, 2018
Measles Reported in 21 States
Measles Reported in 21 States

The Centers for Disease Control says 107 cases of measles have been reported in 21 states since January 1.

Tags: cyber security, digital, protect, risk
April 18, 2018
Collect Online Donations? This New Scam Targets You
Collect Online Donations? This New Scam Targets You

There’s a new scam in town, and ministries and other organizations collecting donations are the primary target. If your ministry collects tithes or donations, you could be targeted by scammers practicing donation overpayment fraud.

Tags: cyber security, finance, fraud, donations
February 21, 2018
Remembering Billy Graham
Remembering Billy Graham

Beloved evangelist Billy Graham was called to his heavenly home on Wednesday, February 21, 2018, at the age of 99.

Tags: Billy Graham
February 9, 2018
Flu Is Widespread: Protect Your Congregation
Flu Is Widespread: Protect Your Congregation

For the first time in its 13 years of influenza monitoring, the U.S. Centers for Disease Control and Prevention is reporting that every state in the continental U.S. is seeing widespread flu activity. Get tips on how to keep your congregation healthy this flu season.

Tags: protect, health safety, risk, health, flu
June 19, 2017
Off-Site Youth Activities
Off-Site Youth Activities

Snow skiing. Camping. Whitewater rafting. A youth group trip can give students an exciting diversion from their weekly routines, as well as an opportunity to strengthen healthy friendships. Off-site activities may challenge your students to step outside of their comfort zones a bit, but this can bring about a positive result.

Tags: youth, insurance, safety
June 7, 2017
Insurance Protection Should Accompany Every Mission Trip
Insurance Protection Should Accompany Every Mission Trip

If you are in the process of planning a mission trip for your church group, make sure to think carefully about insurance, safety, and security as you hammer out the details. Extra preparation could minimize headaches when your group arrives on the mission field.

Tags: mission insurance, foreign travel, liability, coverage
May 24, 2017
Think Before You Loan Your Ministry's Vehicles
Think Before You Loan Your Ministry's Vehicles

Has your church or school ever been asked to loan one of your vans or buses to another? Before you decide to loan your ministry vehicles to another organization, seriously consider the potential risks associated with such a decision.

Tags: auto insurance, loaning vehicles
March 29, 2017
Has Your Church Completed a Personal Property Inventory?
Has Your Church Completed a Personal Property Inventory?

Completing a personal property inventory of your church or ministry could be one of the wisest activities you can pursue. If disaster strikes and you file an insurance claim, you may need an inventory highlighting damaged items.

Tags: claims, coverage, insurance, property