Health Care Reform Legislation Requires the W-2’s Show Value of Health Coverage
UPDATE 10/21/10: The IRS has announced that the health care reporting requirement will be optional in 2011 and mandatory in 2012. From the IRS “to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with this requirement, the IRS will defer the reporting requirement for…
Clergy Housing Allowance: Principal Residence
In the case of a taxpayer using more than one property as a residence, whether property is used by the taxpayer as the taxpayer’s principal residence depends upon all the facts and circumstances. If a taxpayer alternates between 2 properties, using each as a residence for successive periods of time, the property that the taxpayer…
Clergy Love Gifts
Are “love offerings” to clergy always taxable income?
Do we need to write a termination letter?
Do we need to write a termination letter? There is no federal requirement for churches to provide written notice about why someone is being terminated, but we do recommend providing written notice as best practice. This reduces the likelihood of the terminated employee spinning up their own (possibly illegal) reason for the termination and then…
Impropriety Policies
Impropriety Policies A true story that is every church leader’s worst nightmare: It was a weekday, and the police had just left the church office. The officers showed up unannounced and informed the staff that their visit was for the purpose of investigating an allegation of abuse in a children’s classroom from the previous Sunday….
Can self-employed ministers deduct commuting mileage?
Can self-employed ministers deduct commuting mileage? Travel can be one of the most problematic areas for many of your self-employed ministers. The crux of the matter is defining when a drive is a commute and when it’s a deductible travel expense. This definition depends crucially on the minister’s principal place of ministry. Driving between home…
Is there still time to claim employee retention credits?
Is there still time to claim employee retention credits for our church? Yes! The first expiration date for the credits is April 15, 2024, for any 2020 credits. 2021 credits can be claimed through April 15, 2025. That said, the IRS is still taking 6-12 months to process most credits, so the cash is not…
Non-accountable Reimbursement Plan
Non-accountable Reimbursement Plan If the church or religious organization reimburses or advances the employee for business expenses, but the arrangement does not satisfy the three requirements of an accountable plan, the amounts paid to the employees are considered wages subject to FICA taxes and income tax withholding, if applicable, and are reportable on Form W-2….
Payment of Employee Ministry Expenses
Payment of Employee Ministry Expenses A church or religious organization is treated like any other employer as far as the tax rules on employee business expenses. The rules differ depending upon whether the expenses are paid through an accountable or non-accountable plan, and these plans determine whether the payment for these expenses is included in…
File W-2 and 1099 Online
Start Filing W-2 and 1099 Forms today! Online W-2 and 1099 Filing for Churches The W-2 Form is probably one of the most common tax forms used by churches today, as every employee must receive one prior to filing their income taxes out and every employer must produce them. The mere mention of filing a…