2018 Housing Allowance Form

Housing / Manse / Parsonage Designation

The Regulations require that the housing allowance be designated pursuant to official action taken in advance of such payment by the employing church or other qualified organization.  Treas. Reg. § 1.107-1(b).

While this Regulation does not require the designation to be in writing, as a practical matter the designation should always be documented in advance of payment by official action of the qualified organization.  This may take different forms, such as by resolution, budget line item, corporate minutes, employment contract, etc.

Tax Guide for Church and Religious Organization

This tax guide looks at the benefits and responsibilities of churches
and religious organizations under the federal tax law.

Source: Publication 1828

Religious Exemption

Examples of a variety of tax exemptions that clergy may be eligible for.
4361 Religious Exemption Form

Source: Form 4361

Understanding the Clergy W-2 form

A summary of what amounts to enter in each box of a clergy W-2.

Source: Form W2

Clergy Return Example

An example of a clergy federal income tax return including:
Form 1040, Schedule A, Schedule C, Schedule SE, Form 2106

Source: Clergy Tax Law Short-Course

Housing Compensation Package

An example of a housing compensation package.

Source: Clergy Tax Law Short-Course

Installment Request

For those that are having trouble making federal tax payments.
Interest and penalties may still apply.

Source: Form 9465

Parsonage Compensation Package

An example of a parsonage compensation package.

Source: Clergy Tax Law Short-Course

Church Overtime Exemption Guide

The Fair Labor Standards Act (FLSA) establishes requirements for minimum wage and overtime pay. It also imposes various restrictions on record keeping and the employment of minors. The FLSA affects most churches and is enforced by the Wage and Hour Division of the Department of Labor (DOL).

What Does it Mean to be Exempt?

An exempt employee is one who is not subject to the minimum wage and/or overtime provisions of the FLSA. This means that the employer does not have to pay the employee a premium for hours worked over 40 in a week. However, it also means that the employee’s wages may not be reduced when fewer hours than normal are worked, except in limited circumstances. There are a variety of positions that are exempt from the minimum wage and overtime provisions of the FLSA; this guide deals only with what are called the White Collar Exemptions.

When determining if an employee is exempt, there are several factors to consider. It is not enough to look at a job title to ascertain whether an employee is exempt – you must look at the actual duties and tasks that make up the majority of an employee's job, plus how the employee is paid and how much the employee is paid.

State laws can also impact how an employee may be classified. For instance, employers in many states – such as California, New York, Oregon, and Washington – should proceed with care as there are some differences between the applicable states laws and the FLSA. Some exempt roles may not exist under state law or might be much more difficult to meet. California in particular has many exemption criteria that are more stringent than the federal requirements outlined here. Check with our HR Professional to see if your state has any unique regulations.

Federal_FLSA_Guide