Can self-employed ministers deduct commuting mileage?
Can self-employed ministers deduct commuting mileage? Travel can be one of the most problematic areas for many of your self-employed ministers. The crux of the matter is defining when a drive is a commute and when it’s a deductible travel expense. This definition depends crucially on the minister’s principal place of ministry. Driving between home…
Church Board Duties
Church Board Duties The start of the year is a good time for church boards to ensure that they have remained compliant with all of their duties to the organization. Of course, church entities are not all structured the same. Some are set up with broad congregational membership authority. Others are largely board governed. There…
Employee Handbooks for Churches
Employee Handbooks for Churches Churches sometimes lean toward avoiding too much formality around hiring practices and employment procedures. There can be a bias against seeming too “corporate” or running the church “like a business.” Heightened formality may seem natural when a church is hiring a previously unknown candidate for a pastoral position. But in other…
Is there still time to claim employee retention credits?
Is there still time to claim employee retention credits for our church? Yes! The first expiration date for the credits is April 15, 2024, for any 2020 credits. 2021 credits can be claimed through April 15, 2025. That said, the IRS is still taking 6-12 months to process most credits, so the cash is not…
Non-accountable Reimbursement Plan
Non-accountable Reimbursement Plan If the church or religious organization reimburses or advances the employee for business expenses, but the arrangement does not satisfy the three requirements of an accountable plan, the amounts paid to the employees are considered wages subject to FICA taxes and income tax withholding, if applicable, and are reportable on Form W-2….
Payment of Employee Ministry Expenses
Payment of Employee Ministry Expenses A church or religious organization is treated like any other employer as far as the tax rules on employee business expenses. The rules differ depending upon whether the expenses are paid through an accountable or non-accountable plan, and these plans determine whether the payment for these expenses is included in…
Automatic Exemption for Churches
Automatic Exemption for Churches Churches that meet the requirements of IRC Section 501(c)(3) are automatically considered tax-exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS. Although there is no requirement to do so, many churches seek recognition of tax-exempt status from the IRS because this recognition assures…
File W-2 and 1099 Online
Start Filing W-2 and 1099 Forms today! Online W-2 and 1099 Filing for Churches The W-2 Form is probably one of the most common tax forms used by churches today, as every employee must receive one prior to filing their income taxes out and every employer must produce them. The mere mention of filing a…
Non-deductible ministry meals & travel?
Non-deductible ministry meals & travel? Generally speaking, a deductible ministry expense must be “ordinary and necessary” for it to count as a write-off. Ordinary and necessary simply means it’s a common expense for someone in the ministry, and it’s essential for the operation of your church. Unfortunately, you can’t deduct all the food that you…
What is mileage reimbursement?
What is mileage reimbursement? Mileage reimbursement is the reimbursement you receive for using a personal vehicle for ministry purposes. The reimbursement covers all costs of owning and driving your vehicle for the qualified miles. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Mileage reimbursement is normally…
