Minister’s Housing Challenge Update
There has been an important development this month in the most recent court challenge to the minister’s housing exclusion brought by the Freedom From Religion Foundation (FFRF). The federal government who has the responsibility for defending this provision of the tax code made its first filing in the case, and in doing so, conceded that based on…
Who is FICA?
FICA stands for “Federal Insurance Contributions Act.” This is the law that funds both Social Security and Medicare through payroll taxes. Churches share this cost with their employees. Your FICA contributions earn Social Security credits. For 2016, you need to make $1,260 in wages to earn one credit. You can earn up to four credits a…
How Your Church Can Comply With The New Overtime Rules
The FLSA requires covered employers to pay “non-exempt” employees at least the minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Federal_FLSA_Exemption Guide If your exempt employees earn less than the new salary requirement, they will no longer meet exemption criteria and…
HR Policy and Document Customization
When keeping up-to-date, organized and in compliance with employee information, HR forms are a must! Our HR Pros will customize or create the forms that you need to maintain consistency and stay compliant with applicable employment laws. For example: Employee Policy Job Descriptions HR Documents, checklists, and forms guides QSEHRA Notice Several often ask if it…
Housing Allowance
The housing allowance which you pay your Pastor in cash and the housing allowance the IRS allows your Pastor on an income tax return might not be the same number. The reason for this is that the IRS includes more expense items when calculating a housing allowance than the absolute minimum items these guidelines mention…
Three Administrative Steps when Hiring Employees
Step 1. Set up Records for Withholding Taxes According to the IRS, you must keep records of employment taxes for at least four years. Keeping good records can also help you monitor the progress of your church, financial statements, identify sources of receipts, keep track of expenses, and payroll tax returns, etc. Below are three types of withholding taxes you…
What is FICA?
The Federal Insurance Contributions Act (FICA) is a U.S. law requiring a deduction from paychecks and income that goes toward the Social Security program and Medicare. Both employees and employers are responsible for sharing the FICA payments. The church is required to pay Social Security and Medicare (FICA) taxes on all non-clergy employees. All nonprofits must withhold…
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Compensation Package
Clergy Compensation Package The new 1986 Tax Reform Act, the 1987 Omnibus Budget Reconciliation, Technical Correction Act of 1988, and the 1993 Reconciliation Act make the most sweeping changes in almost 50 years. The new law is not simple. Your salary package is the most important factor in determining your annual tax liability. At year…