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…
Why are clergy taxes so complex?
There are a number of different reasons for Clergy Taxes being more complex than the average return. First, Clergy are treated differently from every other employee in regards to their compensation. Clergy have a unique “dual status”- they are treated like employees for income tax, and they are treated like independent contractors for Social Security…
Summer Camps can be deductible
For those of us with children, summer camp can be a memorable but expensive activity. Fortunately, there is a tax deduction that can help. IRS allows working parents, students or those looking for work to deduct a portion of these child care expenses on their 1040 return at the end of the year. While the…
Church Health Reimbursement Arrangement (QSEHRA)
A qualified small employer (one that employs fewer than 50 full-time (including full-time equivalent) employees, and does not offer a group health plan to any of its employees) may offer a QSEHRA to its employees for the payment or reimbursement of eligible medical expenses (including individual insurance policy premiums) on a pre-tax basis. The QSEHRA…
Top Ten Tips for 1040s
Here are ten tips to avoid errors when filing your 1040 returns. Math and typing errors- Using tax software or a tax firm to prepare your return greatly reduces the chances of mathematical errors, but it is still easy to transpose digits while doing data entry. Even if you have someone prepare your return, check…
Can we classify our musicians as a contractor?
Most churches often struggle with “employee classification” usually with their musicians, nursery workers, secretaries, custodians, etc. Generally, the IRS looks at three areas: Behavioral Control, Financial Control, and Type of Relationship. In most cases, church musicians do not pass the test of being an independent contractor because of the control that the employer exercises over…
When does the I-9 need to be completed?
All new employees must complete Section 1 of Form I-9 on or before their first day of employment. Then, within three business days of their start date, they should submit acceptable proof of their identity and eligibility to work in the United States. As the church, you should complete Section 2 within those same three…
Five Quick Facts about Gift Tax
Gift tax is paid by the giver, not the recipient. If Uncle Bill decides to give you $20,000, you do not need to pay any tax on it. It would be Bill’s responsibility to report that gift to the Federal Government and to pay the taxes. In 2019, the annual exclusion limit is $15,000. This…
Outside Employment Policy – Employee Handbook
Employees may engage in outside employment during non-working hours, provided doing so does not interfere with their job performance or constitute a conflict of interest. Prior to accepting outside employment, employees should notify their manager in writing. The notice must include the name of the Company, the title and nature of the position, the number…
Employee Expense Reimbursements
The compliance and financial risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Would your books survive an IRS spot-check? Do you know which reimbursements for employee expenses should be treated as expenses … and which as compensation?…
