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…

21st Century Cures Act Signed President Obama signed the 21st Century Cures Act into law thus creating an option for small businesses to offer employees a health reimbursement arrangement (HRA) that is funded by the employer. Beginning January 1, 2017, the maximum employees can receive per year through the HRA is $4,950 for individuals who…

2017 Standard Mileage Reimbursement Rates   The Internal Revenue Service has issued its 2017 optional standard mileage rates. Effective January 1st, 2017, the IRS standard rate will be 53.5 cents per mile driven for ministry or business purposes (The new rate is down from 54 cents per mile for 2016 because of lower gas prices. )….

Question A newly-hired employee cannot come up with proper identification for the Form I-9. He has presented an expired state ID, but no other documentation. I assume we can’t accept the expired documentation. Can we still have him work or should we let him go? Answer You are correct that you may not accept an…

Due to the sensitive nature of your data, cybercriminals increasingly target the financial data. Thieves use a variety of tactics, from remote computer takeovers to phishing scams. Identity thieves are a formidable enemy. Data breaches are increasing in number and scope. Thieves often use the stolen identity information to file tax returns. As a tax preparer,…

Next Steps for Churches Because of the injunction, churches that had planned to reclassify salaried, exempt employees who earned between $23,660 and $47,476 as hourly, nonexempt employees can simply maintain their current pay practices. However, churches should start tracking those employees’ hours because if the preliminary injunction is overturned, the plaintiffs’ bar likely will argue…

A federal judge for the U.S. District Court for the Eastern District of Texas issued a nationwide preliminary injunction on the Department of Labor’s new overtime rules, which were slated to go into effect in just over a week on December 1, 2016. The judge ruled that the Department of Labor (DOL) likely overstepped its…

The revised Form I-9 is easier to complete on a computer. Enhancements include drop-down lists and calendars for filling in dates, on-screen instructions for each field, easy access to the full instructions, and an option to clear the form and start over. When the employer prints the completed form, a quick response (QR) code is automatically…

Although the federal Fair Labor Standards Act (FLSA) does not directly define full-time or part-time employment, there are standards to follow. It is up to the church to decide how many hours per week employees must work to receive either full-time status or part-time status. As long as the church designates what constitutes full-time and part-time status and…

On November 22, 2016,  U.S. District Judge Amos Mazzant granted a preliminary injunction on the new overtime rules that were to take effect December 1, 2016.  U.S. District Judge Amos Mazzant III ruled in favor of the plaintiffs  who argued that the new OT rules would have caused an an increase in government costs in their states and would…