Which form do we use – 1099-MISC or Form 1099-NEC

The IRS issued two new forms for the 2020 tax year – Form 1099-NEC and a revised Form 1099-MISC. The newly reintroduced Form 1099-NEC is used to report payments for nonemployee compensation (NEC) that were previously reported on box 7 of Form 1099-MISC. Background The IRS reported confusion among taxpayers regarding these deadlines. To alleviate…

Read More
Q&A – Timing of terminating employees

Question: We are going to terminate an employee who has not been meeting expectations, even after several warnings. Could we give the employee notice that their employment will end in two weeks? That way they have a little time to search for a new job. Answer: We would not recommend giving notice ahead of an…

Read More
Refund delays, stimulus check errors foreshadow rough tax season

Tax-refund delays and stimulus-payment hiccups could spill into the upcoming tax season as the Internal Revenue Service continues to face challenges related to the coronavirus pandemic and as Congress considers yet another round of direct payments. Millions of Americans waited months for refunds in 2020, and millions also have yet to receive some or all…

Read More
Tax Season Start Date

The IRS announced it will begin accepting and processing returns on Friday, Feb. 12, 2021. The decision was made to push back the start date by a month to allow the department extra time to prepare following the Dec. 27, 2020 tax law changes. The tax filing deadline remains April 15, 2021.

Read More
When are credit cards purchases deductible

Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…

Read More
Car allowances vs. mileage reimbursement

If you use your personal car for a business, you can take a mileage deduction to save on your taxes. But what if you drive your own car for the ministry at your church? The church can provide you a car allowance or mileage reimbursement. Let’s go over the differences between a car allowance and a mileage…

Read More
What kind of records should I keep

You may choose any recordkeeping system suited for your ministry that clearly shows your income and expenses. Your recordkeeping system should include a summary of all ministry transactions. This summary is ordinarily made in some type of bookkeeping account. Supporting Documents Purchases, sales, payroll, and other transactions you have in your ministry will generate supporting…

Read More
When are credit card purchases deductible?

Credit card statements are necessary to prepare your taxes. They have a record of items that were purchased with the credit card some of which may be tax-deductible on your tax returns. There is a belief that you deduct your purchases as you pay off your credit card: This belief is incorrect. When you put…

Read More
Before your first payroll of 2021

Update Employee Income and Deductions The first payroll of the year is the perfect time to review and update your employee deductions, such as: Medical Dental Life Insurance Retirement deductions such as 403(b) Other voluntary deductions You should plan to change retirement deductions based on the new limits for 2021. Limits generally change from year…

Read More
Churches can now file W-2/1099 forms online – Quick, Easy & Secure

Start Filing Forms Today Every church that pays remuneration for services performed by an employee must file a Form W-2 for each non-clergy and clergy employee or 1099 forms for contractors. For most churches, the mere thought of year-end reporting can cause headaches. You have to do it every year, and it consumes valuable time…

Read More
Request Information

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

Click Here