Church Responsibilities – I-9 Audit
In accordance with federal law, all individuals hired by the church are required to establish and certify their identity and right to work in the United States. Individuals employed in the United States are required to complete Section 1 of the Form I-9 no later than their first day of employment. This may be completed…
What happens if I overspend my housing allowance?
A very common question in Clergy Tax Preparation is “If I designated X as my housing allowance, and I overspend it, what happens?” Many believe that overspending your housing allowance will result in a penalty or getting into trouble with the Internal Revenue Service. This is not true. Let’s look at a scenario to show…
What is Honoraria?
The dictionary defines honoraria as “a payment given for professional services that are normally rendered without charge” or “a payment in recognition of acts for which custom or propriety forbids a price to be set”. This would include payments made for things like weddings, baptisms, funerals, pulpit supply or speaking engagements. In most situations, it…
Payroll Compliance – Form I-9
We receive a lot of questions about the I-9—the form used to verify the identity and employment authorization of all individuals hired for employment in the United States. Here are some of the most common: 1: How Should I-9s Be Stored? Separately. We recommend that you keep all I-9s in either a separate master file or…
Cut-Off Date for 1040 Documents
This message is intended for Clergy Financial Resources clients who extended their 1040 return to October 15th. If you turn in your 2018 tax organizer and supporting tax documents by close of business on Mon, Sept. 16th, Clergy Financial Resources can guarantee filing by the October 15th deadline. If you miss the Sept. 16th cut-off,…
Safeguard against Church Embezzlement
One of the last places you would expect embezzlement is within the financial offices of a Church. However, if you search the news for “church embezzlement”, you will find it is actually becoming a very common event. Many of these stories begin with a financial crisis. An employee has a mortgage that can’t be paid,…
A New Benefit: Student Loan Repayment
Churches looking for new ways to compensate their clergy or attract new clergy must distinguish themselves from other churches. Creative benefit packages often do the trick, particularly if they address specific needs. With more and more seminary graduates entering the workforce and more and more of them graduating with substantial debt, some churches have created…
Refunds Lost After Three Years
IRS does not charge any penalties for filing your 1040 return late if you are due a refund, but don’t put off filing for too long. IRS has a three year statute of limitations on refunds, starting with the original due date of the return. This means that if you file after the three year…
Third Estimated Payment Due Sept. 16th
As Summer comes to a close, Clergy and other Self-Employed individuals prepare to make their third estimated tax payment for the year. The third payment is normally due September 15th, but since the 15th falls on a Sunday, the due date is pushed to Monday the 16th. If you used Clergy Financial Resources to prepare…
Are churches exempt from unemployment insurance?
Unemployment benefits are available to workers who lose their job involuntarily because of reasons out of their control and meet basic state law eligibility requirements. Unemployment benefits are administered at the state level and offer temporary financial help to workers who have lost their job and meet state law requirements. Most employers are required to…
