Charitable Contribution Bundling
Charitable Contribution Bundling Recent changes in the federal tax code have raised the amount of the standard deduction compared to past years. At the time of this writing, the federal standard deduction is $12,400 per year for single taxpayers, and $24,800 per year for married couples. One of the implications of claiming the standard deduction…
Ministers Versus Non-Ministry Employees
Ministers Versus Non-Ministry Employees Churches should make a careful distinction between their paid workers who are acting as ministers versus those who are non-ministry employees. There are several considerations that can only apply to those who qualify as “ministers.” First, ministers can receive a clergy housing allowance, if properly designated, which shields a portion of…
Sabbaticals and Compensation
Sabbaticals and Compensation Clergy members are among the professionals who are commonly given an opportunity to take a periodic break labelled as a “Sabbatical” after a a number of years of ministry service to their church. With the spiritual and emotional demands that often come with pastoring a church, it is indeed a good practice…
Church Governing Documents
Much like the United States government traces its authority back to the U.S. Constitution and subsequent statutes, each church traces its authority from its primary governing documents: Formation document (Articles or Certificate of Incorporation) and Bylaws. The formation document acts like a church’s constitution, and the bylaws act like the church’s statutes. These governing documents…
5 Questions on Church Payroll
Setting up and managing payroll for a church can be complex. There are several questions a church should ask in order to stay compliant with tax and legal requirements. Question 1: Does the church follow standard employment protocols? Like any employer, a church should obtain and keep standard information and documents (including Form W-4 and…
13 IRS Audit Red Flags
There’s no sure way to avoid an IRS audit of your tax return, but these red flags could increase your chances of drawing unwanted attention from the IRS. The IRS audited only 0.4% of all individual tax returns in 2019. The vast majority of exams were conducted by mail, which means that most taxpayers never…
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…
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…