Can our church set up a Flexible Spending Account for our minister? 
What are rules for the employer (size, charity, etc.)?  Where can I
get more details?

I'm on the board of a mid-sized church (300 members) that employs two
full-time people and a number of part-timers (30 hours/week or less). 
We have just hired a new minister and would like to offer her a Flex
Spending Account to help her pay her portion of her health insurance
premium with pre-tax dollars.  Will that work?

I think...but I am no expert on the subject...you would need a minimum
number of employees to find someone who would even administer such a
plan. HOWEVER!! From what I understand, it is QUITE legal to offer
your full-time employees a reimbursement of healthcare expenses. For
instance, I used to work for the big Apple Cider mfg in the northeast.
Each year, you could be reimbursed for up to $300 for eye care (they
had other stuff, too). One of the big things is making sure you offer
all your full-timers the same benefit. As I recall, I tried to get a
flex account for our small office with about 8 employees. Could not
do. Had to have at least 25 employees, I think. However, perhaps a
local insurance administrator could do something for you. Good luck!
And how great that she's a SHE!!

mmertmom-ga:

Hi, I was just "passing through" and was intrigued by your question.

You might want to browse through the materials at the links below (all
to the same organization). I'm not familiar with them, nor associated
with them, but the materials seem clear and helpful, and may give you
some alternatives (such as the HRA instead of the FLEX account...note
that at one point in the brochure, it mentions that premiums are
included). Be sure and pay attention to the non-discrimination items
mentioned here and there...but at 3 full time employees (or 2, if the
minister is already one of the 2 you mention), you seem to be "safe."
This is not a "comprehensive" answer, just a "food for thought"
one....good luck in your research.

http://www.clergyfinance.com/docs/other_pdfs/Health_Reimbursement_Arrangement.pdf

http://www.clergyfinance.com/handouts.php

http://www.clergyfinance.com/faq.php

Hi.
Since clergy are not subject to income tax I don't think that she
would benefit from a flexible benefit account.

jillellen, the IRS just doesn't agree with you on that.

See:

Topic 417 - Earnings for Clergy
http://www.irs.gov/taxtopics/tc417.html

Publication 517 (2004), Social Security and Other Information for
Members of the Clergy and Religious Workers
http://www.irs.gov/publications/p517/index.html