Churches want to acknowledge the hard work of their employees and volunteers, so they frequently give gifts around the Holidays. Many of these holiday gifts fall into the category of “De Minimis Fringe Benefits”. In IRS terms, a “De Minimis Fringe Benefit” is a benefit with a value too small or too difficult to value….
This Employee Handbook is intended to inform employees about the philosophy of the church, employment practices, policies, and benefits, as well as the conduct expected from employees. While this handbook is not intended to be a contract, it does include important guidelines that employees are expected to understand and follow. Except for the at-will employment…
The image above details what to expect in different fields of a typical clergy W-2 form. Do you need help with your clergy W-2s? Clergy Financial Services can file W-2 or W-2 correction forms for you. Visit our website at https://www.clergyfinancial.com/services/church-payroll/easy-w-2-filing-is-a-click-away/
The short answer to this question is yes. Unlike non-clergy employees, clergy do not have Social Security or Medicare taxes taken out of their paycheck. The Church also does not pay any matching portion to IRS, so the Minister has to pay both halves, the employee and employer portions. These are usually paid in quarterly…
Have you considered conducting background checks as part of your hiring process? The practice is fairly typical within the church and for those who work with children, the elderly, or people with disabilities. If you’re wondering whether you should do so as well, check out our overview of the process below. Identify the reason for…
If you recently received an inheritance, you may be wondering if you have any tax obligations. Fortunately, except for very large estates, most people will never have to pay any sort of tax on their inheritance. Estate tax is calculated based on the value of the deceased’s assets at time of death. This is usually…
The Clergy Housing Allowance is a portion of a Minister’s pay that has been designated to pay housing expenses. It is considered one of the best tax benefits currently available to Clergy because this portion of income can potentially be exempt from income taxes. In order to determine how much of the Clergy Housing Allowance…
If your Church is paying for your ministry-related expenses, it is important to know if you are being paid under an Accountable plan or a Non-Accountable plan. It has a huge impact on your 1040 taxes. Under an Accountable plan, you are reimbursed for expenses. If you go out and buy a $10 book, you…
Most taxpayers will receive their W-2 forms in January and file their returns, no problem. But what do you do if your employer won’t give you a W-2, or they refuse to correct it? IRS expects you to contact your employer and try to fix it with them, first. Make sure to document your attempts…
Q. Can churches classify paid workers as independent contractors to avoid paying FICA or withholding income taxes from them? A. No. Churches cannot classify paid workers as independent contractors in an effort to save money. They must follow the law. For a non-clergy employee, the church generally must withhold income and FICA (Social Security and…
