Ministers Defined by the IRS
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
Career Opportunity
Business Administration Specialist – Fulltime Is administration your thing but you would like a little something extra? This position will not only use your administrative and organizational skills, it also requires a level of social media savvy. Fast growing tax and payroll firm serving clergy and churches throughout the United States is in search of…
What Is Self-Employment Tax?
When a church hires a worker, one of the initial decisions that must be made is whether to treat the worker as a minister, non-minister employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For…
Advantages of a Premium Only Plan
If your employees pay a portion of their group insurance premiums, you may be able to reduce your payroll taxes, and give workers a little extra in their checks each and every payroll, by setting up premium only plan (POP) through payroll deductions for their share of insurance premiums. The Section 125 POP program is a…
When do I use Form W-9?
When a church hires a worker, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. When you hire a new employee, you need to fill out paperwork to…
Are all ministers treated as self-employed for social security purposes?
Ministers have what is commonly referred to as “dual tax status.” For federal income tax purposes, a minister is generally treated as a common law employee. For payments into Social Security, the minister is always self-employed. This is an IRS regulation and not an election. Services that a duly ordained, commissioned, or licensed minister performs in…
Who Qualifies For Special Tax Treatment As A Minister
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll and taxes. Ministers have what is commonly referred to as “dual tax status.”…
W-2 and 1099 Filing: What You Need to Know
The IRS requires churches to report wage and salary information for employees on Form W-2. Your W-2 also reports the amount of your housing, federal, and state withholdings. As a non-clergy or clergy employee, the information on your W-2 is extremely important when preparing your tax return. To insure you have it in time, the IRS…
Ask the Pros – Clergy Tax Law
Researching a clergy 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. Most callers want answers to specific questions on tax returns, interpretations of new laws or maybe you don’t have time to find the answer…
Do you need an official designation for Housing allowance?
2018 Housing Allowance Form The allowance must be officially designated in advance by the church. The designation should be stated in writing, preferably by resolution of the governing body and/or in an employment contract. In addition, the designation should be recorded in the church budget and payroll records. If the only reference to the housing allowance is…