IRS raises standard mileage rate effective July 1
IRS raises standard mileage rate for second half of 2022 The IRS announced that it is increasing the optional standard mileage rate for the second half of 2022. Effective July 1, 2022, the standard mileage rate for ministry and business travel will increase by four cents per mile, to 62.5 cents per mile. The medical…
When Are 2022 Q2 Estimated Taxes Due?
When Are 2021 Q2 Estimated Taxes Due? The tax system in the U.S. is “pay as you go,” so estimated taxes are due on a quarterly basis. The expectation is that each taxpayer will pay their estimated income and self-employment taxes due for the most recently-completed calendar quarter. The due date for the second quarter’s taxes, covering…
Can a church have different PTO policies for job categories?
Can a church have different PTO policies for job categories? Employers can generally offer different PTO benefits to different employees as long as there is a valid and non-discriminatory business reason for doing so. We would recommend mentioning your policy variations in your employee handbook to be clear on the subject. With that said, it…
Starting a Nonprofit Organization: Insurance Coverage
Starting a Nonprofit Organization: Insurance Coverage In all the busyness of completing state incorporation and applying for federal tax-exempt status, an item that often gets overlooked in starting a nonprofit organization is setting up proper insurance coverages. Often an organization is prompted to obtain insurance when a third party inquires about coverage, for example, when…
Starting a Nonprofit Organization: Federal Tax-Exempt Status
Starting a Nonprofit Organization: Federal Tax-Exempt Status Once a non-profit organization has been incorporated with the state, obtained a federal employee identification number, formed a board, and commenced operations, it can apply for tax-exempt status with the federal government. There are two major reasons why a nonprofit may desire tax-exempt status. First, exempt status allows…
Starting a Nonprofit Organization: State Reports and Filings
Starting a Nonprofit Organization – State Reports and Filings Previous articles in this series have discussed nonprofit start-up tasks of incorporating with the state, obtaining a federal employee identification number, opening bank accounts, and applying for federal tax-exempt status. Beyond these vital tasks of starting a non-profit organization, there may be several additional details to address…
Can a part-time employee be exempt?
Can a part-time employee be exempt? Yes, a part-time employee may be classified as exempt. The minimum salary and duties requirements must still be met, of course. And the minimum salary cannot be prorated when an exempt employee works part-time. In other words, the federal requirement to pay $684 per week (or the higher state minimum salary) will…
Remember, estimated tax payment is also due on April 18.
Remember, estimated tax payment is also due on April 18. The first 2022 estimated tax payment for individuals and most other calendar year entities is also due on April 18, 2022. The penalties for late payment of estimated taxes are computed as simple interest, but the interest rate has been increasing. The federal estimated payment…
What if you don’t have the money to pay the tax?
What if you don’t have the money to pay the tax? The IRS will allow you to file an extension without paying the tax. You are still required to include an estimate of the tax due on the form. (The extension will not be accepted without this amount being entered.) The late filing penalty will…
Reimbursement Policies
Reimbursement Policies Many religious organizations have made fixed sum monthly payments to their minister or other staff for a “travel or professional allowance” and do not request an accounting for how the money was spent. Allowance plans are always taxable are reported on Form W-2. It is strongly recommended that the congregation establish an Accountable…
