What are the benefits of offering an HRA to our employees? You are most likely considering an HRA because you have decided to lower your health plan expenses by not providing your employees with group health insurance. The HRA will provide financial assistance to cover their eligible out-of-pocket healthcare expenses. Health reimbursement arrangements (HRAs) are…
Who should consider converting to a Roth IRA? You must pay income taxes on any converted funds in the year of the conversion, but there are several scenarios in which that might be to your advantage: You believe your tax bracket will be higher in retirement. In this scenario, paying taxes at your current tax…
CARES Act expansion of IRC Section 127: Tax savings on student loan repayment assistance Under Section 127 of the Internal Revenue Code (IRC), employers are allowed to provide tax-free payments of up to $5,250 per year to eligible employees for qualified educational expenses. To be considered qualified, payments must be made in accordance with an…
Employee Benevolence When it comes to benevolence, the IRS makes a distinction between providing donations to people who lack the basic necessities of life (food, water, shelter, etc.) and awarding gifts to your employees. Gifts to the Needy Generally speaking, if your organization provides benevolence to someone in poverty or temporary distress, the IRS considers…
Can a Church Give an Employee Loan? During times of economic hardship, individuals may approach their employer and request a personal loan in order to help make ends meet. If an employee of a church requests a personal loan from the church, there are several issues to consider. As a matter of policy, will the…
Can I limit the number of times an employee makes changes to their W-4? No. IRS guidance states that an employee has the right to make changes to their Form W-4 as often as they would like, and you, as the employer, need to make those changes, even if they’re frequent. The only exceptions are…
Q. Can all church employees qualify for housing allowance? A. No. Section 107 of the Internal Revenue Code allows only a “minister of the gospel” to have a housing allowance. Thus, only taxpayers who are serving as clergy under IRS rules for tax purposes are eligible for a housing allowance. These rules state that the…
Quarterly Estimated Tax Payments – Reminder If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st, 2022 quarter of the year is January 17th, 2023. You may be able to skip the January 18th payment if you file your 2022 return by January 31st,…
2023 Mileage Rate Announced WASHINGTON — The Internal Revenue Service today issued the 2023 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes. Beginning on January 1, 2023, the standard mileage rates for the use of a car (also vans, pickups, or panel…
Can I deduct the value of volunteer work? In short, there are certain tax benefits to take advantage of as a volunteer. In fact, any volunteer of a §501(c)(3) tax-exempt organization is entitled to receive deductible charitable contributions. Although no tax deduction is allowed for the value of the services performed for this type of…
