Top 10 Clergy W-2 Mistakes
Correctly filing Clergy taxes can be difficult, especially because many W-2 forms already contain errors or omissions. Here are ten common mistakes that are made when issuing Clergy W-2 forms. Forgetting to remove 403(b) contributions from taxable wages. The wages that Clergy defer into their traditional 403(b) retirement accounts should not be taxed. Forgetting to…
How Do I Get the PPP Loan Forgiven?
You are eligible for loan forgiveness for the amounts you spend over the next eight weeks after receiving the loan on certain qualifying expenses. The qualifying expenses of the church over the eight-week period include payroll costs, rent, interest on mortgage debt and utilities. If the number of full-time employees is reduced over this time…
FAQ – Paycheck Protection Program (PPP)
The Paycheck Protection Program (“PPP”) authorizes up to $349 billion in forgivable loans to churches and small businesses to pay their employees during the COVID-19 crisis. The loan amounts will be forgiven as long as: The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8…
Sick Leave & Child Care Leave Credit – COVID-19
Churches can begin taking advantage of two new refundable payroll tax credits designed to immediately and fully reimburse them, dollar-for-dollar, for the cost of providing COVID-19-related leave to their employees. This relief to employees and small and midsize businesses is provided under the Families First Coronavirus Response Act (FFRCA). The act gives businesses(including churches) with…
Employee Managment – Time Tracking
Question: Our employees often don’t turn their timesheets in on time. If an employee doesn’t submit his/her sheet on time, can we delay processing his paycheck until the next pay period? Answer: Getting employees to turn timesheets in on time can be challenging. It is the obligation of the church to pay employees on the…
Hiring Contractors? Get the W-9 Upfront!
Hiring Contractors? Get the W-9 Upfront! Churches that hire contractors have a requirement to obtain their Tax ID Number on form W-9 if they will have to issue a 1099-MISC to them. However, Churches may not know at the beginning of the year if they will pay more than $600 and need to send the…
Who qualifies for “Clergy Status”
The employing congregation, denomination, integral agency of a denomination or a church, or religious organization is responsible to determine whether an individual qualifies as clergy status under the federal law definition. Having “minister” in the title or ministerial duties in a job description is not enough. The IRS uses the five criteria listed below to…
Understanding Clergy W-2 Forms
The image above details what to expect in different fields of a typical clergy W-2 form. Do you need help with your clergy W-2s? Clergy Financial Services can file W-2 or W-2 correction forms for you. Visit our website at https://www.clergyfinancial.com/services/church-payroll/easy-w-2-filing-is-a-click-away/
FLSA Changes: Updating Your Policies and Practices
Have you reviewed your policies and practices in light of the upcoming overtime changes? Reclassified employees may have to follow procedures and policies that didn’t apply to them before—or that you didn’t have. Changing habits can be a challenge, but changing those of your formerly exempt employees with respect to hours worked and tracked is…
Top Three Clergy W-2 Mistakes
Listing wages or withholdings in Boxes 3 through 6. Clergy are treated like self-employed individuals in regards to Social Security and Medicare taxes. They should not have taxable Social Security or Medicare wages, and they should not have Social Security or Medicare withholdings. Including the Housing or Parsonage allowance in places that it shouldn’t be….