Sick Leave & Child Care Leave Credit – COVID-19

Churches can begin taking advantage of two new refundable payroll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (FFRCA). The act gives businesses(including churches) with…

Read More
Unemployment insurance for churches due to COVID-19

The COVID Phase III Stimulus Package provides specific provisions that will allow pastors or ministry staff who have lost their jobs to apply for unemployment benefits. The law creates a temporary program through December 31, 2020, to provide payment to those not traditionally eligible for unemployment benefits (self-employed, independent contractors, those with limited work history…

Read More
Financial Relief for Churches – COVID-19

The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help churches and small businesses keep  workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during…

Read More
What is the Fair Labor Standards Act?

The Fair Labor Standards Act (FLSA) is a federal law that mandates minimum wage and overtime pay for many employees. This law was designed to protect employees by assuring that employers pay eligible employees at least minimum wage for all hours worked and overtime for any hours worked over 40 per week. Although few congregations…

Read More
New Bill – Give Ministers the Opportunity to Opt-in to Social Security

Congressman Kevin McCarthy recently held a press conference with local pastors about his newly introduced bill, the Clergy Act. This bill would offer ministers – many of whom opted out of paying into Social Security in their youth – a two-year “open season” to effectively opt-in to Social Security. McCarthy released the following statement: “In…

Read More
New 2020 W-4 – Line by Line Instructions

The new version of the 2020 Form W-4, Employee’s Withholding Certificate, was issued Dec. 4, 2019. Employees filling out the form no longer are to be able to claim any withholding allowances. The one-page Form W-4 is divided into five instructional sections: Step 1, Enter Personal Information, includes Steps 1a, 1b, and 1c; Step 2,…

Read More
What is the difference between standard and itemized deduction

It’s a good idea for people to find out if they should file using the standard deduction or itemize their deductions. Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Individuals should understand they have a choice of…

Read More
8 questions about employee expense reimbursements

The IRS knows full well how lax a lot of employees are about documenting their expenses—and how often churches let it slide. We have collected a handful of recent questions that may be helpful to your church. Q. If an employee uses a personal credit card for a ministry purchase, is there a time limit…

Read More
Q&A – The rules for cellphone reimbursement

Q: “When it comes to reimbursing employees or providing a monthly stipend for the use of their personal cellphones for ministry purposes, is this a non-taxable fringe benefit?” A: Yes, provided that your reimbursement is reasonably calculated to actually reimburse the employees for the actual costs of maintaining the phone. Creating a policy for employee…

Read More
Sample Letter Explaining the 2020 Form W-4 to Employees

Beginning in January 2020, there will be a whole new look for the W-4 form, which is where workers tell their employers how much money to take out — or withhold — from their paychecks for federal income taxes. The biggest change to the W-4 form is the removal of the allowances section. You’ll no longer…

Read More
Request Information

Complete the request form and a clergy tax, payroll or HR advisor will contact you

Click Here