What to do if you can’t afford to pay
Life is unpredictable, especially during a pandemic. If you weren’t able to pay your return timely for whatever reason, don’t panic. Here are some tips to help: Even if you can’t pay, you should still file your return. There is a penalty for late-filing a return, and it is based on how late the return…
Can my severance pay be designated as housing?
Whether it is through resignation or retirement, a Church may agree to pay severance pay when a Minister leaves a position. In almost all cases, this severance pay is considered taxable income to the pastor or minister. The question then arises- could you designate this severance pay as housing? This is actually a question of…
SECURE Act removes limit on age for retirement contributions
If you are retired or nearing retirement, you may want to pay attention to the SECURE Act that went into effect January 1st of 2020. This act made a number of important changes to retirement account rules, including: Raising the minimum distribution age to 72 (Was previously 70 and a half) Removing the age limit…
What is the difference between standard and itemized deduction
It’s a good idea for people to find out if they should file using the standard deduction or itemize their deductions. Deductions reduce the amount of taxable income when filing a federal income tax return. In other words, they can reduce the amount of tax someone owes. Individuals should understand they have a choice of…
Sample Letter Explaining the 2020 Form W-4 to Employees
Beginning in January 2020, there will be a whole new look for the W-4 form, which is where workers tell their employers how much money to take out — or withhold — from their paychecks for federal income taxes. The biggest change to the W-4 form is the removal of the allowances section. You’ll no longer…
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…