Can we classify our administrative assistant as a contractor?
Question: We want to hire an administrative assistant. Can we classify this person as an independent contractor during a 90-day try-out period and then, if they work out, hire them as a full-time employee at the end of the 90 days? Answer: It’s highly unlikely that an administrative assistant would meet the criteria for classification…
Are Benevolence Payments Deductible? –
The church can structure benevolence payments either as tax deductible contributions or nondeductible contributions. The most difficult kind of benevolence contribution is a contribution that designates a specific recipient. The designation may be in writing, on a envelope accompanying the contribution, in a letter, fundraiser, or even oral. Ordinarily designated contributions to a benevolence fund…
Understanding Clergy Employment-
Churches are required to classify each person that is hired as either a secular or clergy employee. This is a very crucial step in the hiring process. Clergy are taxed differently than secular employees and this treatment is mandated by law. It isn’t optional, so it is important to know who qualifies as secular or…
Avoid Costly Payroll Errors
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…
Understanding Accountable vs Non-accountable Reimbursement Plans
When a church covers ministry related expense using an allowance or a non-accountable reimbursement, all those payments must be included with taxable salary on an employee’s W-2 and reported as taxable income. A non-accountable plan is a policy where the church pays a fixed amount each pay period and does not meet all the requirements…
Clergy Membership
Welcome to Clergy Membership – We’re here for you, the expert, and invite you to become a part of our organization. You’ll receive all the support, education, discounts and weekly updates. We’re your most trusted, comprehensive and cutting edge resource for clergy tax expertise. Setting the industry standard for excellence and integrity is what we have been doing…
Is Interim Ministry Mileage Deductible?
Q: I am an interim minister serving a church 100 miles away. This interim position will last less than a year. I know that driving between home and church is not deductible, but would this situation count as temporary employment so that I would be eligible for the standard mileage deduction? A: Commuting between your home and a…
