Deductions for Charitable Contributions May Be Challenged by IRS
Clergy are allowed an income tax deduction for charitable contributions made during a tax year to qualifying organizations. Cash contributions must be substantiated by cancelled checks or receipts from the donee organization showing the organization’s name, date and amount of the donation or other reliable information. Gifts of property must be substantiated by similar receipts…
Time to review PTO policies?
Even if your church is not located in a state or city with a mandatory PTO sick leave law, you should be proactive and make sure that the church’s PTO and sick leave policies are clearly defined and clearly communicated to employees. Even if your church is exempt from FMLA, it may be in the…
Get the Most Out Of Your Charitable Giving
Charitable donations can do more than help your church, they can save you a lot of money come tax time. Whether you are looking to give $50 or $5,000 there are a slew of ways to maximize the gift of giving. The benefits primarily center around tax deductions. You are able to take dollar-for-dollar deductions….
What is FICA?
The Federal Insurance Contributions Act is the federal law that requires you to withhold two separate taxes from the wages you earn. It includes Social Security Tax and Medicare Tax at a flat percentage rate. The Social Security Tax is 6.2% rate of your wages, and the Medicare Tax is 1.45% of your wages. You’re…
401(k) & 403(b) Contributions Limits Increased for 2015
The Internal Revenue Service today announced cost‑of‑living adjustments for pension plans and other retirement-related items for tax year 2015. The elective deferral (contribution) limit for employees who participate in 401(k), 403(b), most 457 plans, and the federal government’s Thrift Savings Plan is increased from $17,500 to $18,000. The catch-up contribution limit for employees aged 50…
Employees versus Independent Contractors
Incorrectly classifying someone as an independent contractor instead of an employee can be very costly for the church based on IRS penalties. When in doubt, your best bet is to classify someone as an employee. If you really want to classify an individual as an independent contractor, you can’t dictate how much time they spend…
Identity Theft Protection
Each year during tax season, millions of people are exposed to identity theft when their 1099-MISC and W-2 forms are sent through the mail. Our CyberCabinet protects you, your employees and your contractors. The CyberCabinet offer you an ultra-convenient way to access documents, transfer data, and convey information 24/7 from any Internet connection. Source: Clergy…
Does your Church need an Employee Handbook Update?
Having a clear, well-organized employee handbook is a crucial element of the church-employee relationship. An employee handbook helps all employees understand church policies and procedures and assists with ensuring the smooth day-to-day operation by establishing clear workplace rules and policies. Contact us for more information. Source: Clergy Financial Resources Home Clergy Financial Resources is a…
Hobby or Business?
Millions of people enjoy hobbies that are also a source of income. You must report on your tax return the income you earn from a hobby. The rules for how you report the income and expenses depend on whether the activity is a hobby or a business. There are special rules and limits for deductions…
Can churches reimburse employee health care premiums?
For many years, churches have been permitted to reimburse employees for or directly pay the cost of individual health insurance policy premiums and exclude such amounts from the employee’s gross income. However, recent Internal Revenue Service guidance effectively eliminates these health care reimbursement plans after December 31, 2013. Group health insurance policy premiums paid directly…