When do I use Form W-9?
When a church hires a worker, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. When you hire a new employee, you need to fill out paperwork to…
Are all ministers treated as self-employed for social security purposes?
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. Services that a duly ordained, commissioned, or licensed minister performs in…
Is Volunteer Work Still Tax Deductible?
The IRS will not allow individuals to deduct the monetary value of their volunteer service to a nonprofit on their individual income tax returns. But volunteers may be able to deduct for certain volunteer expenses. Your donation will be deductible only if it is made to a qualified nonprofit, tax-exempt organization. That is, the IRS must have granted 501(c)(3) tax-exempt…
Are Home Equity Loans Still Deductible Under New Law
The new federal tax law created a lot of confusion over whether taxpayers were still able to deduct the interest they pay on their home equity loans and home equity lines of credit. If you’re planning to redo a bathroom or a kitchen or fix up a fixer-upper, the interest on new home equity loans,…
Should I Amend my Tax Return
Did you make a mistake on your federal income tax return but didn’t catch it until after you filed? Maybe an important tax document arrived in the mail days after you e-filed your return. Don’t worry, you’re not in trouble — as long as you file an amended tax return to correct the error. Filing…
Do Ministry Meals Remain Deductible?
Long-term disability: Pre-tax or after-tax?
Long-term disability (LTD) insurance provides you with income if you become disabled and are unable to work. Although your church may pay the full premium for this coverage, you can choose whether the premium is deducted from your pay before or after taxes. Important tax considerations are as follows: If you choose to pay for…
How Much Do We Pay Supply Pastors
Payment to Supply Pastors Generally, the payment to supply pastors is $175 for one worship service, and $75 for each additional service/adult forum/Bible study on the same day and at the same location. Travel should also be reimbursed at the current IRS rate per mile, plus applicable parking, ferry, and road or bridge tolls. The payment…
Can I Estimate Ministry Miles on My Return?
The IRS requires that you have adequate records backing up your mileage deduction. If you’re audited, the IRS examiner will ask to see your records or log. If you don’t have exact, reliable records, the IRS will ordinarily disallow your entire mileage deduction. This is true even if it’s clear that you did in fact drive…
How Your Church Can Comply With The New Overtime Rules
The FLSA requires covered employers to pay “non-exempt” employees at least the minimum wage for each hour worked as well as overtime pay for all hours worked in excess of 40 in a workweek. Federal_FLSA_Exemption Guide If your exempt employees earn less than the new salary requirement, they will no longer meet exemption criteria and…
