Question: Do churches and ministries have to comply with ACA reporting?
Answer: It depends. Your obligation to report depends entirely on the size of your team, not your tax-exempt status. If your ministry averaged 50 or more full-time employees, including full-time equivalent (FTE) employees, during the previous calendar year, you are legally considered an Applicable Large Employer (ALE) and must track and report this data to the IRS annually.
Remember that part-time employees do count towards your status. The IRS adds up all part-time hours in a month and divides by 120 to convert them into full-time equivalents. If that combined total hits 50, you must file Forms 1094-C and 1095-C to prove whether or not you offered affordable health coverage to your full-time staff (those averaging 30+ hours a week).
If your ministry is growing or utilizing a high volume of part-time staff, proactively audit your employee counts so you don’t get hit with non-compliance penalties down the road.
Original content by HR Ministry Solutions. This information is provided with the understanding that Payroll Partners is not rendering legal, human resources, or other professional advice or service. Professional advice on specific issues should be sought from a lawyer, HR consultant or other professional.
