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.

April 3, 2023
Tragedy in Nashville
Tragedy in Nashville: What can we learn from the Covenant School shooting?
Tags: insurance, coverage, ministry
March 17, 2023
Worry-Free Mission Travel
Worry-Free Mission Travel
Tags: insurance, coverage, ministry
March 17, 2023
HR Document Library at your Fingertips
HR Document Library at your Fingertips
Tags: insurance, coverage, ministry
March 17, 2023
Highlights from Recent Security Training Events
Tags: insurance, coverage, ministry
January 24, 2023
Wind and Hail – Deductible Buyback
Wind and Hail – Deductible Buyback
Tags: insurance, coverage, ministry
January 24, 2023
Common Questions About Our Agency
Common Questions About Our Agency
Tags: insurance, coverage, ministry
January 24, 2023
Coming to your area in 2023
Coming to your area in 2023
Tags: insurance, coverage, ministry
January 24, 2023
Kingdom Advancing Grant
Kingdom Advancing Grant
Tags: insurance, coverage, ministry
January 24, 2023
ACG Retreat in Kansas City
ACG Retreat in Kansas City
Tags: insurance, coverage, ministry
January 23, 2023
Loaning Your Ministry's Facilities
Loaning Your Ministry's Facilities
Tags: insurance, coverage, ministry
January 23, 2023
Protecting You and Your Ministry Partners
Protecting You and Your Ministry Partners
Tags: insurance, coverage, ministry
January 9, 2023
Better Achieve Your Mission in 2023
Better Achieve Your Mission in 2023
Tags: insurance, coverage, ministry
November 18, 2022
Our Team is Growing, Again!
November 10, 2022
We Want To Hear From You!
We Want To Hear From You!

There are a lot of hats worn in any growing ministry – and we want to serve every one of them. 

Tags: insurance
November 10, 2022
Evaluate Your Ministry's Fire Safety Plan
Evaluate Your Ministry's Fire Safety Plan

With the holiday season right around the corner, it’s wise for ministries to evaluate their fire safety plan. Whether your ministry is hosting a holiday party, prepping treats for charity, or running a community kitchen, make sure you’re well-prepared with these tips.

Tags: insurance, property, volunteer safety, fire safety
November 10, 2022
Holiday Season Safety & Security: 3 Things to Plan Before Christmas
Holiday Season Safety & Security: 3 Things to Plan Before Christmas

The holidays present unique opportunities and challenges for churches that aren’t typical during other times of the year. A lot of the ministries that I work with are seeing steady increases in attendance and are praying for a significant jump in Christmas service participation this year. 

Tags: insurance
October 26, 2022
October 2022 Blog: What is a 403(B)(9) Retirement Plan?
October 2022 Blog: What is a 403(B)(9) Retirement Plan?

In this article, Brad Brown from Plan A Wealth Management gives a wonderful insight into why ministries might consider choosing a 403(B)(9) retirement plan.  

Tags: insurance, property, taxes, retirement, retirement plan
September 21, 2022
Inflation's Major Impact on Ministries
Inflation's Major Impact on Ministries
Tags: insurance, schools, churches, building, property
September 21, 2022
Report Reveals How Students are Feeling About Their Safety at School
Report Reveals How Students are Feeling About Their Safety at School
Tags: insurance, schools, building, property, child safety
September 21, 2022
Top 10 Requested Forms
Top 10 Requested Forms
Tags: insurance, schools, churches, building, property