Will Employer Penalties Under Health Care Legislation Affect the Church and Other Non-Profits?

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According to this piece from the Wall Street Journal the health care bill that is going through Congress carries provisions for heavy fines on those employers who do not provide health insurance to their employees.

Payrolls over $400,000 would pay an 8% fine for not covering employees.
Payrolls from $250,000 to $400,000 would pay a reduced fine.
Payrolls under $250,000 would be exempt.

According to the ACU Ministers Survey 2009 here is what that might mean for a typical congregation based on average salaries and typical numbers of employees:

Church of 450 employing a preacher ($70k), associate minister ($69k), youth minister ($55k), and other (college, children’s, etc – $50k), and support staff ($70k). If you add in supporting a missionary full time or part time that would also go in. Total not including a missionary – $314k

It wouldn’t be hard at all for many churches to pay more than $400k in salary. I am not certain this applies to non-profits. I have done some searching and haven’t found anything to say either way so I am assuming it does. At 8% of the salary level, this could easily hit some churches for 50k or more a year in fines.

0 Responses

  1. Matt,

    Be concerned – be very concerned. Telephone calls against this bill are 15 to 1 against. But Congress isn’t listeing and most Americas haven’t a clue what’s in this bill. Pelosi said she has the votes to pass this bill so it will probably pass.

    Right now every preacher in this country should be preaching from the roof tops AGAINST this runaway socialist trainwreck that is destroying our country. But they won’t because it’s not politically correct. Our founding fathers are probably rolling over in their graves right now. What has happen to the home of the brave? Where are our churches? Our churches must speak out!

    Lastly a guy by the name of FLECKMAN is Twittering the Healthcare Bill. A fex of my concerns are listed below. The comments are FLECKMAN”s TWEATS not mine:.

    Pg 22 of the HC Bill MANDATES the Govt will audit books of ALL EMPLOYERS that self insure!!

    PG 50 Section 152 in HC bill – HC will be provided 2 ALL non US citizens, illegal or otherwise

    Pg 58HC Bill – Govt will have real-time access 2 individuals’ finances & a National ID Healthcard will be issued!

    Pg 59 HC Bill lines 21-24 Govt will have direct access 2 ur banks accts 4 elect. funds transfer

    Pg 95 HC Bill Lines 8-18 The Govt will use groups i.e., ACORN & Americorps 2 sign up indiv. for Govt HC plan

    pg 124 lines 24-25 HC No company can sue GOVT on price fixing. No “judicial review” against Govt Monop

    Pg 126 Lines 22-25 Employers MUST pay 4 HC 4 part time employees AND their families.

    Pg 167 Lines 18-23 ANY individual who doesnt have acceptable HC accrdng 2 Govt will be taxed 2.5% of inc

    Pg 241 Line 6-8 HC Bill – Doctors, doesnt matter what specialty u have, you’ll all be paid the same

    Pg 317 L 13-20 PROHIBITION on ownership/investment. Govt tells Drs. what/how much they can own


  2. I thank God for the Canadian health services. Naturally, it isn’t free. The more one earns, the more one pays in taxes. Yet, those who are “dirt poor” have access to the same care as the “filthy rich”.
    Of course the system isn’t perfect. In fact it is far from perfect. Yet, I do believe it is much better than the USA system that I knew. Your present government bill might be totally flawed; I have no comment to make on it.
    In 1982 I needed an aortic valve replaced and waited three months for it because it was not an emergency. Last year I needed that valve replaced (There is a life-time guarantee with it.) and didn’t need to wait because it was an emergency. In both cases, the government health plan paid 100% of the costs.
    Since 1968 my wife has been in and out of hospital – up to three times in one year (Six months one year!) without cost to us. Presently one of her medications costs $20,000 per year. Even though most medications are not covered, this one is. (Also, as a Senior Citizen, we only pay $2.00 or $6.11 – depending on the drug story – per prescription.)
    Richard, Toronto, Canada

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