Nonprofit Resources


The Importance of ACA Compliance for Churches

As we shared in a previous Email Alert, the IRS has said it will be sending inquiries to “several hundred” churches that are Applicable Large Employers (ALEs), as described in the Affordable Care Act. An ALE is an employer with more than 50 full-time equivalent employees.

This Church Law & Tax article provides a helpful overview. As the article notes:

  • The ACA does not have exceptions applicable to churches
  • The penalties can be up to $100 per day per employee
  • While the audits will affect a small percentage of churches, all church leaders should ensure their churches are compliant

You can read the full article here. Please contact us at [email protected] with any questions.

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