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Membership Benefits  Ask a Tax Pro Members receive 5 free questions each calendar year. Researching a tax issue on your own takes time and can leave you wondering if you’ve got the right answer. Turn to Clergy Financial Resources to save time while getting the correct answers. When you need an answer, our support staff is ready…

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2016 State Worksheets

In addition to the Clergy Tax Organizer, we also provide a state worksheet. This worksheet will assist you in gathering state information needed to prepare your current tax return. Please print and complete a state worksheet for your resident state. The state worksheet is required and should be included with other supporting documents which can be…

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Preparing for Year-End and 2017 – Payroll Compliance:

Is your church concerned about payroll compliance? Beware, the IRS is hiring 700 new revenue agents whose only job will be to hunt down payroll-law violations. That means intense new scrutiny of your W-2s, 1099s, 1095s and other payroll tax reporting compliance. Last year, 60% of clergy W-2 forms were issued in error by churches and payroll…

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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…

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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…

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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…

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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…

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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…

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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…

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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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