Is there still time to claim employee retention credits?
Is there still time to claim employee retention credits for our church? Yes! The first expiration date for the credits is April 15, 2024, for any 2020 credits. 2021 credits can be claimed through April 15, 2025. That said, the IRS is still taking 6-12 months to process most credits, so the cash is not…
Non-accountable Reimbursement Plan
Non-accountable Reimbursement Plan If the church or religious organization reimburses or advances the employee for business expenses, but the arrangement does not satisfy the three requirements of an accountable plan, the amounts paid to the employees are considered wages subject to FICA taxes and income tax withholding, if applicable, and are reportable on Form W-2….
Payment of Employee Ministry Expenses
Payment of Employee Ministry Expenses A church or religious organization is treated like any other employer as far as the tax rules on employee business expenses. The rules differ depending upon whether the expenses are paid through an accountable or non-accountable plan, and these plans determine whether the payment for these expenses is included in…
File W-2 and 1099 Online
Start Filing W-2 and 1099 Forms today! Online W-2 and 1099 Filing for Churches The W-2 Form is probably one of the most common tax forms used by churches today, as every employee must receive one prior to filing their income taxes out and every employer must produce them. The mere mention of filing a…
Non-deductible ministry meals & travel?
Non-deductible ministry meals & travel? Generally speaking, a deductible ministry expense must be “ordinary and necessary” for it to count as a write-off. Ordinary and necessary simply means it’s a common expense for someone in the ministry, and it’s essential for the operation of your church. Unfortunately, you can’t deduct all the food that you…
What is mileage reimbursement?
What is mileage reimbursement? Mileage reimbursement is the reimbursement you receive for using a personal vehicle for ministry purposes. The reimbursement covers all costs of owning and driving your vehicle for the qualified miles. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Mileage reimbursement is normally…
Pros and cons of healthcare sharing ministries
Pros and cons of healthcare sharing ministries Like any health benefit, healthcare-sharing ministries have their pros and cons. This section will break down the major advantages and disadvantages of healthcare ministries so you can make the best decision for you and your organization. Pros of healthcare sharing ministries While low costs are a perk of…
Benefits of offering an HRA
What are the benefits of offering an HRA to our employees? You are most likely considering an HRA because you have decided to lower your health plan expenses by not providing your employees with group health insurance. The HRA will provide financial assistance to cover their eligible out-of-pocket healthcare expenses. Health reimbursement arrangements (HRAs) are…
Employee Benevolence
Employee Benevolence When it comes to benevolence, the IRS makes a distinction between providing donations to people who lack the basic necessities of life (food, water, shelter, etc.) and awarding gifts to your employees. Gifts to the Needy Generally speaking, if your organization provides benevolence to someone in poverty or temporary distress, the IRS considers…
Can I deduct the value of volunteer work?
Can I deduct the value of volunteer work? In short, there are certain tax benefits to take advantage of as a volunteer. In fact, any volunteer of a §501(c)(3) tax-exempt organization is entitled to receive deductible charitable contributions. Although no tax deduction is allowed for the value of the services performed for this type of…