When a Nonprofit Organization Ceases Operations
When a Nonprofit Organization Ceases Operations Previous articles have discussed the many steps in setting up a nonprofit organization. Like any new venture, starting a nonprofit comes with risks. Not all new organizations succeed. The disruptions of COVID-19, and the economic impacts that have followed, only add to the volatility of new endeavors. In such…
403(b) contribution limits
403(b) contribution limits Most workers have heard of 401(k) plans and their usefulness in saving for retirement, but other tax-favored retirement savings vehicles are available to certain employees. For those who work in education, medical professions, or nonprofit organizations, many employers offer 403(b) plans. 403(b) plans are similar in many ways to 401(k)s, and one thing they…
Summertime Fiscal Year Transitions
Summertime Fiscal Year Transitions Happy New Year in the summer? For some churches and other nonprofit organizations, this is a sensible statement. Most nonprofit organizations decide to follow the calendar year as their tax year (or “fiscal year”) when they are formed. Upon incorporation, some states require disclosure of the month in which the organization’s…
Three Common Church Payroll Mistakes
Three Common Church Payroll Mistakes Payroll and taxes are usually a confusing topic for churches that can easily find themselves in trouble with the IRS if payroll taxes are not reported correctly. For churches, payroll taxes can be especially tricky due to the dual-tax status of their pastoral staff. There is a widespread misunderstanding among…
10 Reasons to Outsource Church Bookkeeping
10 Reasons to Outsource Church Bookkeeping Managing church finances can be a daunting task even under the most favorable circumstances. Factor in complex tax reports, bank reconciliations, and ever-changing IRS and state guidelines, and you can guarantee church staff is overspending valuable time on workarounds for processes that could be intuitively streamlined. With Clergy Financial…
ICHRA Requirements for Reimbursement
ICHRA Requirements for Reimbursement There are no limits to how much a church can offer for reimbursement under ICHRA. This is a big difference from QSEHRA which has rather restrictive limits. With ICHRA, churches can offer as much or as little as they’d like as long as it’s offered fairly to each class. In addition, employers can choose…
2022 meals and entertainment deduction
2022 meals and entertainment deduction As part of the Consolidated Appropriations Act signed into law on December 27, 2020, the deductibility of meals changed. Food and beverages will be 100% deductible if purchased from a restaurant in 2021 and 2022. Here are some examples: Type of Expense Deduction Entertaining clients (sport events, club membership, golf games, etc.) 0%…
IRS raises standard mileage rate effective July 1
IRS raises standard mileage rate for second half of 2022 The IRS announced that it is increasing the optional standard mileage rate for the second half of 2022. Effective July 1, 2022, the standard mileage rate for ministry and business travel will increase by four cents per mile, to 62.5 cents per mile. The medical…
When Are 2022 Q2 Estimated Taxes Due?
When Are 2021 Q2 Estimated Taxes Due? The tax system in the U.S. is “pay as you go,” so estimated taxes are due on a quarterly basis. The expectation is that each taxpayer will pay their estimated income and self-employment taxes due for the most recently-completed calendar quarter. The due date for the second quarter’s taxes, covering…
Can a church have different PTO policies for job categories?
Can a church have different PTO policies for job categories? Employers can generally offer different PTO benefits to different employees as long as there is a valid and non-discriminatory business reason for doing so. We would recommend mentioning your policy variations in your employee handbook to be clear on the subject. With that said, it…
