FAQs about organizing personnel files
What guidelines should we follow when setting up and organizing personnel files at church? “Personnel records” are records kept by the church about an employee’s qualifications for employment, promotion, transfer, additional compensation, or disciplinary actions. Employees’ medical files should be kept separate from their personnel files. This includes medical certifications, doctor’s notes, requests for family…
Bunch your itemized deductions
You choose every tax year whether to itemize or claim the standard deduction. With the standard amounts almost doubled by the Tax Cuts and Jobs Act, the trend definitely is toward the standard amount, which for 2020 returns is $12,400 for single filers this year, $18,650 for heads of households, and $24,800 for jointly-filing married couples. If,…
The 27th Paycheck
The case of the extra paycheck It happens every 11 or 12 years — and 2020 is one of those years. Depending on which day of the week paychecks are handed out, employees who are paid on a weekly or biweekly basis may be receiving an extra check this month. With a biweekly payroll, an…
Happy Thanksgiving!
To you and yours, no matter where you are, no matter what kind of holiday traditions you have, no matter if you are meeting with family or avoiding gatherings this year, Clergy Financial Resources wishes a happy and safe Thanksgiving!
Church employee is diagnosed with COVID-19 – What now?
As COVID-19 infection rates continue to climb, it’s imperative that churches respond quickly when an employee is diagnosed. Here are the steps employers should take: Notify Employees Employees should be notified of potential exposure in the workplace, but they should not be told who is sick. Employees won’t like that they can’t gauge their own…
Which health reimbursement plan is right for your church?
Name update (September 2026): The Individual Coverage HRA (ICHRA) is now called the CHOICE Arrangement. It’s the same benefit with the same rules. The Health Reimbursement Arrangement (HRA) model has made it possible for more churches to provide health care benefits for their employees with complete control of the costs and provide a pre-tax benefit to their…
When should the church use Form 1099-NEC?
As another year comes to a close, there are many important things that need to be wrapped up before the end of the year. For your church, your to-do list must include year-end payroll duties. Beginning with the 2020 tax year, the IRS will require churches to report nonemployee compensation on the new Form 1099-NEC…
IRS Alert: Beware new text scam
IRS and state tax agencies recently issued a warning to taxpayers about a new scam being sent by text message, this time posing as a link for receiving an economic impact payment. The text message reads “You have received a direct deposit of $1,200 from COVID-19 TREAS FUND. Further action is required to accept this…
Are ministers employees or self-employed?
The answer is “both.” Ministers have what is commonly referred to as “dual tax status.” For federal income tax purposes, a minister is generally treated as a common-law employee. For payments into Social Security, the minister is always self-employed. This is an IRS regulation and not an election. When a church hires an employee, one…
Is Healthcare Sharing Tax Deductible?
If your church is experiencing some sticker shock with your 2021 health insurance increases, you’re not alone. Many people are searching for alternative healthcare solutions, including health reimbursement arrangements (HRAs) and healthcare sharing ministries. Healthcare sharing ministries are cost-sharing programs or private healthcare systems (PHCS) that are set up as a faith-based 501(c)3 not-for-profit organization. Members share religious…