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Employer Mandate Penalty Delayed for Mid-Sized Organizations

Also, proposed charitable deduction floor would affect churches, nonprofits.

The following update was issued by GuideStone Financial Resources:

On February 10, 2014, the Treasury Department released the "Shared Responsibility for Employers Regarding Health Coverage" final regulations. The employer mandate penalty has been delayed for employers with 50 to 99 full-time or equivalent employees until 2016. Employers that have 100 or more full-time employees must offer qualifying coverage for 70 percent of their full-time employees in 2015 or face a penalty. They must also offer coverage to 95 percent of their full-time employees by 2016. Full-time employees are those who average at least 30 hours per week.

Charitable Deduction Floor Proposed

House Ways and Means Chairman Dave Camp in February issued a legislative proposal for comprehensive tax reform that includes provisions which, if adopted, would significantly affect churches and other nonprofit organizations, as well as their donors.

Arguably, the most significant provision that could affect churches and their supporters is a proposal that would generally allow a charitable contribution deduction only to the extent that contributions exceed 2 percent of a taxpayer's adjusted gross income. Other provisions in the sweeping proposal would impose reform measures for churches and other nonprofit organizations in the areas of executive compensation, the "rebuttable presumption" protection for nonprofit and church board members, unrelated business income, noncash contributions, and supporting organizations.

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