It’s Time To Stop Making Payroll Mistakes
Payroll is complicated. There are a lot of tasks, laws, forms, and calculations. With so many things to remember, it’s easy to make a mistake. You should not take payroll errors lightly. Mistakes can result in penalties, interest, and even jail time. The best way to avoid payroll mistakes is by knowing what to look…
Employee vs Contractor
There is no single test for determining if an individual is an independent contractor or an employee. Employee misclassification has always been an important issue and often can trigger IRS attention. Generally, an employee has an ongoing relationship with the church which includes a job description and compensation paid by the hour or salary. A…
Timekeeping Requirements for Churches
The federal Fair Labor Standards Act and similar state wage-hour laws require churches to maintain accurate timekeeping records and to pay nonexempt employees for all hours worked in a workweek and to pay overtime for all hours worked in excess of 40 hours per week. Some states also impose daily overtime requirements. To pay employees…
Calculating Overtime When a Church Employee Is Paid a Salary
It is fairly simple to calculate how much overtime a nonexempt employee is owed when the employee is paid an hourly wage. But calculating overtime becomes a bit more difficult when the employee is paid on a salary basis. The methods for calculating overtime vary depending on whether the employee’s salary is intended to cover…
Defining the Workweek or Work Period For The Church
The Fair Labor Standards Act (FLSA)’s overtime laws require churches to pay employees overtime when they work beyond a certain threshold, usually 40 hours in a workweek. For most churches, the workweek coincides with the calendar week, running from 12 a.m. Monday to 12 p.m. on Sunday. But churches are allowed to use any fixed…
How Your Church Can Comply With The New Overtime Rules
The FLSA requires covered employers to pay “non-exempt” employees at least the minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Federal_FLSA_Exemption Guide If your exempt employees earn less than the new salary requirement, they will no longer meet exemption criteria and…
Are You Hiring Temporary Church Employees?
Hiring Temporary Employees Churches often have lots of tax and legal questions when hiring temporary employees. Temporary employees are still employees; not independent contractors. An employee working in a church — whether the job is temporary or permanent, part-time or full-time — is an employee of the church. It is illegal for the church to treat a temporary…
Is Your Babysitter An Employee?
Who’s a Household Employer? The IRS defines a household employer as someone who pays an individual to perform duties in or around their home and has the right to control when, where, how or by whom the work should be performed. Household employees include nannies, senior caregivers, housekeepers, nurses, personal assistants, chefs, estate managers, etc….
5 Tips On Creating PTO Policy For Your Church
In the payroll business, we see many versions of time off policies – it’s rare to have two that are the same. However, one thing we do see with regularity is churches tying themselves in knots trying to implement a policy that they think is fair for everyone. What they end up doing is creating…
5 Steps To Prepare for New Overtime Rules
5 Steps To Prepare for New Overtime Pay Rules Your church will likely face one of the largest challenges in just the next few months. Most churches aren’t ready for the new overtime and worker classification changes to the Fair Labor Standards Act (FLSA) the Department of Labor recently published, which will impact to millions…
