Give Withholding and Estimated Payments a Check-up to Avoid a Tax Surprise
Some clergy are surprised to learn they’re due a large federal or state income tax refund when they file their taxes. Others are surprised that they owe more taxes than they expected. When this happens, it’s a good idea to check your federal tax withholding or estimated payments. Doing so now can help avoid a…
Tax Tips for Clergy Moving this Summer
Tax Tips for Clergy Moving this Summer If you make a work-related move this summer, you may be able to deduct the costs of the move. This may apply if you move to start a new call or to work at the same job in a new job location. In order to deduct moving expenses,…
Can clergy living in a parsonage receive a parsonage allowance?
Pastors living in parsonages should be provided with a “parsonage allowance.” Even in a parsonage, every pastor has some expense in maintaining his or her home. The amount of the allowance may depend on several factors: whether or not the parsonage is furnished, who provides the upkeep, pays the utilities, etc. When the parsonage allowance…
Tips for Clergy Who Missed the Tax Deadline
Clergy Financial Resources has some advice for clergy who missed the tax filing deadline. File as soon as possible. If you owe federal income tax, you should file and pay as soon as you can to minimize any penalty and interest charges. There is no penalty for filing a late return if you are due…
Health Insurance Payroll Deduction…Taxable or Not?
In order for the payroll reductions for health insurance to be tax-free for employees, the church has to establish a POP (premium only plan) or FSA (flexible spending account) or a cafeteria plan. These benefit plans offer the employee the option to forgo part of his or her compensation on a tax-free basis in order…
Housing Provided for Student Clergy – Taxable or Not?
Like other fringe benefits, free or discounted church-provided lodging is usually subject to income and other taxes. To determine the fair market value of the housing provided to an intern, the church may check local newspaper listings for comparable rental properties or ask a local realtor for an estimate of the property’s rental value. The…
Online Tax Software and Your Clergy Tax Return
Online tax software are great programs for basic secular returns but is often times challenged by the complexity of a clergy return. These software packages do not address some of the tax rules unique to ministers which will greatly affect the accuracy of your return. Therefore, clergy using an online tax software package will require…
Secular and Clergy Employment Status…What’s the difference?
Churches are required to classify each person that is hired as either a secular or clergy employee. This is a very crucial step in the hiring process. Clergy are taxed differently than secular employees and this treatment is mandated by law. It isn’t optional, so it is important to know who qualifies as secular or…
Social Security Tax Increase Starting January 1, 2013
Over the past two years, there has been a “payroll tax holiday” in effect. This reduced the employee’s share of Social Security from 6.2% to 4.2%. This “payroll tax holiday” is scheduled to expire on December 31, 2012. Non-clergy employees will have an additional 2% of Social Security tax withheld from their paychecks starting on…
Is your church in compliance with current payroll laws?
Make sure your church is in compliance with current payroll laws. Clergy Financial Resources payrolls service now includes a “year-to-date” payroll audit. During our audit, we will review each employee’s compensation to to ensure that everyone is being paid in accordance to Federal tax laws. Clergy Financial Resources is the leading payroll provider for churches….