Caution! – Does your church pay money to Individuals
Churches sometimes pay money to people out of a desire to be helpful and gracious. But precautions must be taken! Be careful when your church pays money to any individual. Any time a person receives money from a non-profit organization, like a church, the money must be spent in a way that is consistent with…
Before your first payroll of 2021
Update Employee Income and Deductions The first payroll of the year is the perfect time to review and update your employee deductions, such as: Medical Dental Life Insurance Retirement deductions such as 403(b) Other voluntary deductions You should plan to change retirement deductions based on the new limits for 2021. Limits generally change from year…
Churches can now file W-2/1099 forms online – Quick, Easy & Secure
Start Filing Forms Today Every church that pays remuneration for services performed by an employee must file a Form W-2 for each non-clergy and clergy employee or 1099 forms for contractors. For most churches, the mere thought of year-end reporting can cause headaches. You have to do it every year, and it consumes valuable time…
New W-4 questions on church compliance
Since we don’t want the IRS to put a target on your back or your employees to be under-withheld this year, here are the most frequently asked questions about the new W-4 to help you better understand it and be in compliance. Why did the 2020 W-4 change? The 2020 Form W-4 changed to simplify…
Before your first payroll of 2021
Like any aspect of the church, finalizing year-end payroll and starting a new year is best done with some planning and preparation ahead of time. Payroll processing is just another part of the financial responsibility–knowing the expectations ahead of time, and figuring out a timeline around them, will help you make the best decisions for…
When should the church use Form 1099-NEC?
As another year comes to a close, there are many important things that need to be wrapped up before the end of the year. For your church, your to-do list must include year-end payroll duties. Beginning with the 2020 tax year, the IRS will require churches to report nonemployee compensation on the new Form 1099-NEC…
Should my church outsource our bookkeeping?
Church bookkeepers have for a long time been confused with accountants. They, however, carry very different responsibilities. Bookkeepers maintain the financial records of the church that includes income and expense records. They are supposed to keep records of the dates and amount of every transaction of the church. It is also their task to keep…
4 reasons churches shouldn’t rush their PPP forgiveness applications
Churches who received Paycheck Protection Program (PPP) loans under the Coronavirus Aid, Relief, and Economic Security (CARES) Act will soon be asking if and how they will qualify for PPP loan forgiveness. There is uncertainty over some of the program details. While you may be anxious to apply for forgiveness, here are five factors affecting the…
Financial Relief for Churches – COVID-19
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help churches and small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses. Importantly, these loans may be forgiven if borrowers maintain their payrolls during…
Common Payroll Errors to Avoid
Let’s face it. Managing church payroll – and the avalanche of payroll regulations – means you’re under a lot of scrutiny, and you have to get it right. Each year sixty percent of the church W-2 forms are reported with errors. This is created by the lack of understanding of the reporting requirements of taxable…