2019 E-filing Opens January 27th!
For you go-getters and early risers, IRS will start processing 2019 tax returns on January 27th of 2020. There are some valid reasons to delay filing, though. You may not have all of your tax documents yet. You may still be considering contributing more to a retirement account. And some state and federal tax changes…
2018 State Worksheets Copy
2018 State Worksheets The state worksheet is designed to address the most current tax law changes within your state. Please print and complete a state worksheet for your resident state. If you lived in multiple states, please complete a state organizer for each state. This worksheet will assist you in gathering state information needed to…
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…
Avoid Classifying Employees as Independent Contractors
Q. Can churches classify paid workers as independent contractors to avoid paying FICA or withholding income taxes from them? A. No. Churches cannot classify paid workers as independent contractors in an effort to save money. They must follow the law. For a non-clergy employee, the church generally must withhold income and FICA (Social Security and…
Are churches exempt from unemployment insurance?
Unemployment benefits are available to workers who lose their job involuntarily because of reasons out of their control and meet basic state law eligibility requirements. Unemployment benefits are administered at the state level and offer temporary financial help to workers who have lost their job and meet state law requirements. Most employers are required to…
What Expenses Can Be Used to Justify the Housing Allowance Exclusion?
Generally, any expense to provide or maintain the home can be used to justify the housing exclusion. Regulations do specifically state that expenses for groceries, paper products, personal toiletries, personal clothing, and maid service cannot be used. You may legitimately include the following: (1) rent, principal payments, or down payments plus the cost of buying the home; (2) taxes…
Resolve to Start 2019 Organized!
Nobody likes rushing to gather tax documents just before the April 15th deadline. Who needs the additional stress and worry? Don’t stress out this tax season. Make a New Year’s Resolution to get your tax organizer completed and returned early! Clergy Financial paper organizers will start being mailed to clients on January 15th. The online…
2021 State Worksheets
2021 State Worksheets The state worksheet is designed to address the most current tax law changes within your state. Please print and complete a state worksheet for your resident state. If you lived in multiple states, please complete a state organizer for each state. This worksheet will assist you in gathering state information needed to…
Who Is a Minister?
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
It’s Time To Stop Making Payroll Mistakes
Payroll is complicated. There are a lot of tasks, laws, forms, and calculations. With so many things to remember, it’s easy to make a mistake. You should not take payroll errors lightly. Mistakes can result in penalties, interest, and even jail time. The best way to avoid payroll mistakes is by knowing what to look…