The 10 Types of PTO
According to the Bureau of Labor Statistics, more than 70% of employees have access to paid days off from work for sick or vacation time. Although these are common paid time off programs, sick and vacation days aren’t the only time off work you can offer. Get the scoop on different types of paid time off below….
How to Pay an Independent Contractor
There are specific rules that dictate whether you should pay someone as an employee or as an independent contractor. There is no single test for determining if an individual is an independent contractor or an employee. Employee misclassification has always been an important issue and often can trigger IRS attention. Generally, an employee has an…
Top Employee Benefits Offered by the Church
What benefits does your church offer its employees? This question tends to pop up a lot in job interviews—often right after the interviewer asks “Do you have any questions for me?”. And employee benefits are a fair thing to inquire about; most of us would like to know the perks that a job will give…
Compensation Guidelines for Church Staff
Are you a church leader preparing compensation packages for multiple positions? Or an individual seeking guidance about your own compensation package? The 2018 Compensation Handbook for Church Staff offers everything you need—including expert articles and resources relative to ministry compensation. Churches often struggle to determine pay levels for their pastors and staff. And those in…
Guide to Minister’s Compensation
You may find it helpful to begin by considering the goals of a compensation package. A church should provide its staff with adequate income so that they can fulfill their roles without undue concern about current and future financial needs. Freedom from financial anxiety lets the minister focus on his or her service. It also helps your church…
It’s Time To Stop Making Payroll Mistakes
Payroll is complicated. There are a lot of tasks, laws, forms, and calculations. With so many things to remember, it’s easy to make a mistake. You should not take payroll errors lightly. Mistakes can result in penalties, interest, and even jail time. The best way to avoid payroll mistakes is by knowing what to look…
What Should The Gift Acknowledgement Letter Contain?
Prompt and thoughtful gift acknowledgments are central to reporting compliance. IRS regulations govern what documentation donors need in order to claim a deduction for their charitable contribution. It’s helpful to have the sample template ready to send out that can be customized as donations arrive, and it’s imperative to have a good system for recording…
Flat-dollar Reimbursements Taxable
Question: Employees often use their personal cell phones for church business. The church requires that they submit monthly expense reports and they’re reimbursed through an accountable plan. The church board wants to ditch the paperwork and just pay flat-dollar allowances to employees every month. Would that be taxable? Answer: Yes, the allowances would be taxable because…
Clergy Housing Lands in Seventh Circuit
Churches and the IRS joined forces Wednesday before a sympathetic Seventh Circuit panel to argue that a 65-year-old income tax housing exemption for clergy members does not violate the Constitution’s Equal Protection Clause. “The court has to take history into account,” said attorney Luke Goodrich of the nonprofit law firm Becket, a public-interest firm representing…
Can employees take home old computers for free?
Question: Our church just completed a major upgrade of everyone’s computers. The computers that were replaced were ancient by today’s standards. Rather than throw them out, one staff member suggested that employees take their old computers home. He also said that since the computers are old, we don’t have to worry about taxes. The church board is uncomfortable with this nontaxable suggestion….
