The North Georgia Conference provides $70,000 of group term life insurance coverage to full-time clergy, until age 65. IRS rules require the inference of income to the individual clergy person on the coverage in excess of $50,000. In other words, income must be inferred on the excess $20,000 coverage. This income computation is based on the clergy person’s age and the number of months appointed to your church. More information on this computation can be found in Publication 15B.
The amounts inferred for a clergy person appointed to your church is as follows:
|25 through 29||$14.40|
|30 through 34||$19.20|
|35 through 39||$21.60|
|40 through 44||$24.00|
|45 through 49||$36.00|
|50 through 54||$55.20|
|55 through 59||$103.20|
|60 through 64||$158.40|
|65 through 69||$251.46|
|70 and older||$407.88|
Coverage drops to $16,500 at age 65. This table encompasses that change in coverage.
The amount inferred above should be added to salary in box 1 and disclosed in box 12 with a code ‘c’. Please refer to the instructions for W-2’s.
If your clergyperson is with your church for less than 12 months, please prorate the above amounts appropriately for the portion of the year the clergyperson is appointed to your church.
If your clergyperson has a birthday, causing him/her to cross the above demarcation lines, you will need use his/her age at the end of the year for the entire year’s computation.