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,…
Special $300 deduction for Charitable Donations in 2020
IRS Commissioner Chuck Rettig recently issued a reminder that the IRS has “a new provision that allows for up to $300 in cash donations to qualifying organizations to be deducted from income. We encourage people to explore this option to help deserving tax-exempt organizations – and the people and causes they serve.” Ordinarily, you can…
Can I deduct the mortgage for a home that is being constructed? Does it qualify for the housing allowance?
The IRS allows for taxpayers to deduct all of the interest they pay on a construction loan within the 24 months before the home is completed. (See Publication 936 https://www.irs.gov/publications/p936) There are some rules in order to qualify for the mortgage interest deduction: You can treat a home under construction as a qualified home for…
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…
Are my taxes going to go up in 2021?
Looking forward to the next year, many people are wondering if their taxes are going to go up. Fortunately, the tax brackets for 2021 have already been published, so we have the answer to this question. For the vast majority of Americans, there will be no change or even a slight decrease in taxes if…
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!
How much can I give to charity this year?
A frequent question asked around the holidays is “How much can I give to charity this year?” While IRS does not limit how much you can give, they do place limitations on the tax benefits you can receive for such donations. Here are some quick facts about the amount of charitable donations you can deduct:…
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?
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 employers. There are multiple HRA types to choose from, such as the One-Person Health Reimbursement Arrangements (HRA), Qualified Small Employer Health Reimbursement Arrangement…
