Beware Orlando-Related Scams: IRS
The IRS has issued a consumer alert about possible fake charity scams in the wake of the mass shooting in Orlando, Fla. Scam artists commonly try to take advantage of generosity after such a headline tragedy by impersonating charities to get money or private information from taxpayers, the agency warns. Such fraudulent schemes may involve…
5 Steps To Prepare for New Overtime Rules
5 Steps To Prepare for New Overtime Pay Rules Your church will likely face one of the largest challenges in just the next few months. Most churches aren’t ready for the new overtime and worker classification changes to the Fair Labor Standards Act (FLSA) the Department of Labor recently published, which will impact to millions…
FLSA Overtime Changes
If church employees are paid a salary, does that mean they are exempt from overtime? Not necessarily. To be classified as exempt, employees must meet all of the following requirements: Paid on a salary basis Paid a salary that meets or exceeds the minimum requirement Paid their full salary in any workweek in which they…
Housing Allowance
The housing allowance which you pay your Pastor in cash and the housing allowance the IRS allows your Pastor on an income tax return might not be the same number. The reason for this is that the IRS includes more expense items when calculating a housing allowance than the absolute minimum items these guidelines mention…
Parsonage Provided
 When a parsonage is provided, the congregation should pay for utilities and maintenance. (For tax purposes it is usually to the pastor’s advantage if items like utilities, maintenance, etc. be paid for directly by the congregation rather than to the pastor and then the pastor paying these expenses.) Parsonage Fair Rental Value In addition to…
Designating A Housing Allowance
Some congregations provide their Pastors with a housing allowance in place of a parsonage. This figure should reflect the realistic fair rental value of a home in the community, and would normally include such costs as insurance, utilities and taxes. Generally, a minimum cash payment of $12,000 is required for a housing allowance when a…
Who’s Exempt From Wage and Hour Laws?
Probably the most common — and confusing — exceptions to the overtime laws. Employees whom the law defines as “administrative, executive, or professional” need not be paid overtime. To fit into one of these exemption categories, you must be paid on a salary basis and must spend most of your time performing job duties that require…
Which Employees Are Entitled to Earn Overtime Pay
The church must pay overtime to all eligible employees unless they fit into an exception to the law. If you fall into one of these exception categories, you are “exempt” from the federal overtime law, which means you are not entitled to overtime. executive, administrative, and professional employees who are paid on a salary basis independent…
-Are preschool teachers subject to overtime-
The Department of Labor, which enforces the ELSA, does not consider preschool and day care workers to be “teachers” under the provisions of the FLSA. The Department takes this position even if the pre-school program incorporates educational activities designed to prepare young children for kindergarten. Given these facts, here are some general principles relating to…
What Counts as Overtime:
Federal and most state laws impose a weekly overtime standard, which means that nonexempt employees are entitled to overtime for every hour beyond 40 that they work in a workweek, regardless of how many hours they work in a day. For example, Alex is a nonexempt employee who works 12 hours on Monday and six…
