Three key tax provisions that apply to clergy
The three main key tax provisions that apply to clergy: Self-employment tax Clergy are not eligible to have FICA taxes withheld from their church compensation. In lieu of FICA taxes, clergy pay self-employment tax, also known as Self-Employment Contributions Act tax (SECA). Reimbursements from an employer of SECA are taxable as wages. However, even though…
Does My Church Need an Employee Handbook?
In general, having an employee handbook or policy manual is a good business practice, but specifically, there are some good reasons, from a legal standpoint, to create an employee handbook. The Purpose of an Employee Handbook Employees like to know what is expected of them and they want to know that they are being treated…
Repay Employee Student Loans up to $5,250 tax-free
Many churches want to assist employees in the challenges that come with the COVID-19 pandemic. Now, the CARES Act provides a temporary opportunity to help repay employee student loans. The Coronavirus Aid Relief and Economic Security Act (the “CARES Act”) provides a way for churches to help repay employee student loans, with tax benefits for the employee….
How Do Churches Navigate Commercial Lease Agreements?
How Do Churches Navigate Commercial Lease Agreements? Though many established churches are long-time building owners, there are many newer churches or churches that have outgrown older facilities, which find themselves entering into commercial lease agreements. Just like the documents involved in purchasing a new residence or a new car, the commercial lease agreement may be…
IRS Releases 2021 Fringe Benefits Guide
The IRS updated Publication 15-B for 2021, the Employer’s Tax Guide to Fringe Benefits. This publication provides an overview of the taxation and exclusion rules applicable to employee benefits such as accident and health benefits, dependent care assistance, providing a car, cell phone, health savings accounts, group term life insurance coverage, etc. In general, fringe…
Vaccination, Return to Work, and Masking FAQ
Q1: Can we bring all employees back to the church office, but make the unvaccinated keep their masks on? In most states, yes.* Currently the CDC suggests that fully vaccinated people do not need to wear masks in most places (some workplaces will be an exception, such as healthcare settings), but that non-fully vaccinated people…
4 Unavoidable Legal Issues For Your Church
4 Unavoidable Legal Issues For Your Church As a church leader, there are certain things we don’t like to think about, but in the end, we cannot avoid them. 1) UNDERSTANDING YOUR CHURCH COULD GET SUED . . . AT ANY TIME It is a bad day when a summons is served. Yet in reality,…
FAQs About Form I-9
We receive a lot of questions about the I-9—the form used to verify the identity and employment authorization of all individuals hired for employment in the United States. Here are some of the most common: 1: How Should I-9s Be Stored? Separately. We recommend that you keep all I-9s in either a separate master file or…
IRS Processing Delays
The Internal Revenue Service closed the most recent filing season with more than 35 million in unprocessed tax returns, as the agency’s backlog grew markedly amid a crush of challenges related to the pandemic and economic relief efforts. The National Taxpayer Advocate indicated about 17 million paper tax returns are still waiting to be processed and approximately…
Is your Gift Taxable?
If you’ve given money or property to someone as a gift, you may owe federal gift tax, but in many cases, you will not. For example, there is usually no tax if you make a gift to your spouse or a charity. If you make a gift to someone else, the gift tax usually does…
