How long should we keep employment records
We always recommend to keep all employment tax records for at least six years after filing the 4th quarter for the year. Records should include: Your employer identification number. Amounts and dates of all wage, annuity, and pension payments. The fair market value of in-kind wages paid. Names, addresses, social security numbers, and occupations of…
Best Practices for Churches with 1099 Individuals
IRS Form 1099 reports to the Federal government various types of taxable income paid to contractors and vendors. There are versions of the 1099 to report payments for services as well as interest, dividends, and real estate sale proceeds. This form is issued by churches to guest speakers, pulpit supply, etc., who provide services in…
Payroll Retention Period
Churches must record and preserve specified information and records to show compliance with Fair Labor Standards Act (FLSA) provisions relating to minimum wage, overtime, equal pay and child labor, for each employee COVERED by FLSA Retention Period: 3 Years Required Name, address Date of birth Gender, occupation Workweek days If paid O/T… regular pay rate…
IRS INDEPENDENT CONTRACTOR CHECKLIST
Mistakenly classifying an employee as an Independent Contractor can result in significant fines and penalties. The Internal Revenue Service (IRS) uses twenty factors to determine whether or not an employer has enough control over a worker in order for that individual to be classified as an employee. Designed only as a guideline, this checklist can…
Are we required to update I-9 forms when the documentation that was used expires?
Some, but not all, documents used for the I-9 will need to be reverified upon expiration. Specifically, employees with temporary work authorizations will need to have their eligibility to work in the United States reverified. Employees with temporary work authorizations must indicate their employment authorization expiration date under Section 1 of the I-9 form, and…
Our church is planning to bring on some unpaid interns. Do we need to have them complete I-9 forms?
According to the Department of Homeland Security, I-9 forms are only required for employees, not unpaid interns. When taking on an unpaid intern, however, we urge churches to take extra care. The US Department of Labor has clear guidelines as to what makes an unpaid intern, and if all conditions are not met, the intern…
Employees versus Independent Contractors
Incorrectly classifying someone as an independent contractor instead of an employee can be very costly for the church based on IRS penalties. When in doubt, your best bet is to classify someone as an employee. If you really want to classify an individual as an independent contractor, you can’t dictate how much time they spend…
Top 5 HR or Payroll Mistakes
Let’s face it. Running a church often leaves little time to address human resources (HR) or payroll challenges. Only 6% of the churches have a dedicated HR professional on staff, yet making any of these Top 5 HR or Payroll Mistakes can have direct impact on your HR and payroll compliance: 1. Incorrect employment classification…
New Hire Checklist
Document the Employee is Legally Allowed to Work This involves verifying both their identity and that they are legal for employment in the United States. Once they have presented you with the necessary documentation to verify this, you can fill out their I-9 form. You needn’t submit this to anyone. However, it is crucial to…
Are your church workers classified correctly?
Churches may soon face increased scrutiny relating to employment classifications. The Treasury Inspector General for Tax Administration found in a recent study that 19 percent of small business employers didn’t comply with IRS rulings on worker status. This percent may be higher among churches. We recommended that your church review and increase compliance with employee…
