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…
Common Mistakes of Church Payroll
If you’ve ever experienced payroll errors first-hand, you know the extensive costs and time-consuming efforts that go into correcting them. Even the smallest of payroll slip-ups can snowball into serious, long-term issues and increased expenses, especially if those mistakes continually occur. But when mistakes happen, it’s important to determine what occurred and why, and then…
Got Questions? We’ve Got Answers!
When you need fast, accurate answers to your questions and don’t want to search the variety of online resources to only wonder if you found the right answers, contact Pro-Advisor Support. This support service provides you comprehensive answers to ALL your questions – all from one source. No more hunting through multiple sources! Ministers are…
Bunch your itemized deductions
You choose every tax year whether to itemize or claim the standard deduction. With the standard amounts almost doubled by the Tax Cuts and Jobs Act, the trend definitely is toward the standard amount, which for 2020 returns is $12,400 for single filers this year, $18,650 for heads of households, and $24,800 for jointly-filing married couples. If,…
The 27th Paycheck
The case of the extra paycheck It happens every 11 or 12 years — and 2020 is one of those years. Depending on which day of the week paychecks are handed out, employees who are paid on a weekly or biweekly basis may be receiving an extra check this month. With a biweekly payroll, an…
How much can I give to charity this year?
A frequent question asked around the holidays is “How much can I give to charity this year?” While IRS does not limit how much you can give, they do place limitations on the tax benefits you can receive for such donations. Here are some quick facts about the amount of charitable donations you can deduct:…
How do I fill in form W-4 for my new ministry?
If you haven’t switched positions in a while, you may be surprised to find that the form W-4 has changed drastically since you changed jobs. IRS changed the form to match changes in tax law, and all employees first paid after 2019 will have to use the new form (for frequently asked questions about the…
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…
Are ministers employees or self-employed?
The answer is “both.” 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. When a church hires an employee, one…
FAQ: Can I use nursing home expenses for the housing allowance? Can I deduct them anywhere else?
For clergy who are living permanently in a nursing home, they can use some (but not all) of their nursing home expenses for the housing allowance. For example, the rental cost of their room and the utilities are eligible for the housing allowance. The food and medical care are not eligible for the housing allowance….