What is FICA?

The Federal Insurance Contributions Act (FICA) is a U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments. The church is required to pay Social Security and Medicare (FICA) taxes on all  non-clergy employees.  All nonprofits must withhold…

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How to Avoid a Tax Audit

Besides flagrant errors and intentional lies, four innocent mistakes often attract the attention of the IRS or your state. Should you make one of these mistakes, you need an “audit trail” and filing record ready to prevent the initial investigation from becoming a full-blown audit. Let’s cover the red flags first and disaster prevention second….

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5 Tips for Taxpayers Who Travel for Charity Work

Do you plan to travel while doing charity work this summer? Some travel expenses may help lower your taxes if you itemize deductions when you file next year. Here are five tax tips the IRS wants you to know about travel while serving a charity.     You must volunteer to work for a qualified organization….

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Top 10 Employee Handbook Mistakes

An Overly Detailed Discipline Procedure …  Instead use a cautionary phrase such as “Violation of this policy may lead to discipline, up to and including termination of employment.” Not Controlling Meal and Rest Periods … We should not be interfering with an employee’s ability to take their required meal and rest period breaks. Not Controlling…

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Employee Handbook Checklist

The following topics are considered essential in every employee handbook: Welcome to the Church: Letter from the Pastor Brief history of the church Mission and vision statement Rules and Procedures: Working hours Lunch periods and breaks Holidays, vacations and sick leave Family and medical leave Disability accommodation requests Jury duty Military leave Personal calls/mail/e-mail Personal…

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IRS Looking For Taxpayers Who Pad Their Tax Deductions

It’s tax time. For those who might think, “I’ll add a little here, maybe add a little more there … nobody will notice, right?” Well, the IRS is looking harder at deductions and is warning taxpayers to avoid the temptation of falsely inflating deductions or expenses on their returns to under pay what they owe…

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Chat Live with our Customer Support for a Quick Answers!

Our Customer Support department is standing by to answer your questions—and not just on the phone. To better assist you, we’ve  implemented an online chat feature on our website. Click the We’re Available button on the lower right of our web page. You’ll be prompted to enter your name and  email address. Depending on the nature…

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Tax Scams To Look Out For in 2016

It’s the beginning of tax season, and with it comes veritable stress, including scams. Con artists work diligently to gather personal information that can lead to your hard-earned money being stolen. Over the years, the IRS has become privy to this and crafted advice to deal with each. Here’s a look at a few common…

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Can the housing allowance resolution be amended mid-year?

The housing allowance resolution can be adopted or amended at any time during the year. However, it can only be applied prospectively, not retroactively. It is important for the housing allowance resolution to be adopted by the church council prior to each calendar year (or prior to the start date), which would accurately reflect the…

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Complicated Nanny Taxes

Employing a nanny or an elder-care giver may seem like a simple proposition, but in the eyes of the IRS it isn’t. Is it the your responsibility as a home-care employer to report workers’ earnings to the IRS? Should the worker receive a 1099 tax form or a W-2? Is he or she an employee or…

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