Secretary Subsidy/Stipend Changes 2014 - Adobe Connect Meeting,
January 7, 2014
Notice regarding changes in Medical Expenses Financial Subsidies for
Notice extending taxable stipend through 12/31/2014
To assist in the expenditure of and to encourage County Extension
Councils in offering health benefits, University of Missouri
Extension provides financial assistance to participating Councils.
The financial assistance will be provided as specified below:
For employer-sponsored health insurance, this assistance in the form
of a tax-free subsidy is to be used toward the employer's
share of the cost of the secretary's own health insurance premium
(not to be used toward spouse/dependent's premium, dental insurance
and/or vision insurance premiums).
The 2014 Extension Secretary Health subsidy for
employer-sponsored health insurance will be the lesser of actual
premium or up to $325 a month (cumulatively up to $3,900 for the
year). Extension County Councils must submit (for each
eligible position) an "Employer-Sponsored
Health Insurance Verification" form to receive the subsidy for
each eligible position.
Reimbursement Plans: Private Insurance & Out-of-Pocket
Effective January 1, 2014, several regulations under the
Affordable Care Act became effective. As a result, Extension
will no longer be able to provide a tax-free subsidy for the
following reimbursement plans:
- private premium reimbursement
- allowable out-of-pocket expenses.
Extension will provide a taxable stipend for the 1st
quarter [Jan-March] of 2014 to those County Extension Councils who actually
received reimbursement in 2013 for one of the aforementioned plans. [NOTE:
The taxable stipend has been extended through 12/31/2014.]
The taxable stipend will be based on the:
- Private Insurance Premium -- the lesser of the
2014 quarter subsidy or average 2013 reimbursement (per
- Out-of-Pocket -- the average 2013 reimbursement
received per eligible position (25% of total reimbursement
received [per quarter through 12/31/2014])
Extension County Councils must submit a "Stipend
Request/Verification" form to receive the taxable stipend.
The taxable stipend for reimbursement plans should be provided to
the employee as additional income taxable income. The easiest
method would be to add to the employee's paycheck. Regardless of the method, the stipend
is subject to all applicable employment taxes for both the employee
At this time, there is no guarantee the taxable stipend
will continue beyond March 31, 2014.
Is this employer-sponsored or private insurance?
With employer-sponsored health insurance the County Extension
Council should have a contract/participation agreement with the
provider (i.e., MCHCP, County Government, etc.) The County
Extension Council is responsible for ensuring the premium is paid to
the appropriate provider.
For private insurance, the contract/agreement is between the
individual and the provider. The individual is ultimately
responsible for insuring the premium is paid. In the past,
Councils may have written the check to the health care provider.
This should no longer happen. All private insurance should be paid
by the individual (insured).
If there is any doubt, contact the health care provider and ask
them if the insurance is considered employer-sponsored health
insurance. If the answer is yes, ask the health care provider
(or insurance agent) to send/fax a document stating something to the
effect the insurance provided to Council is
employer-sponsored insurance in accordance with the Affordable
Health Care Act and Missouri Insurance regulations. In
addition to documentation for the Extension subsidy, this will also
provide documentation in the case of an audit.