Payment of Employee Ministry Expenses
Payment of Employee Ministry Expenses A church or religious organization is treated like any other employer as far as the tax rules on employee business expenses. The rules differ depending upon whether the expenses are paid through an accountable or non-accountable plan, and these plans determine whether the payment for these expenses is included in…
Automatic Exemption for Churches
Automatic Exemption for Churches Churches that meet the requirements of IRC Section 501(c)(3) are automatically considered tax-exempt and are not required to apply for and obtain recognition of tax-exempt status from the IRS. Although there is no requirement to do so, many churches seek recognition of tax-exempt status from the IRS because this recognition assures…
File W-2 and 1099 Online
Start Filing W-2 and 1099 Forms today! Online W-2 and 1099 Filing for Churches The W-2 Form is probably one of the most common tax forms used by churches today, as every employee must receive one prior to filing their income taxes out and every employer must produce them. The mere mention of filing a…
Non-deductible ministry meals & travel?
Non-deductible ministry meals & travel? Generally speaking, a deductible ministry expense must be “ordinary and necessary” for it to count as a write-off. Ordinary and necessary simply means it’s a common expense for someone in the ministry, and it’s essential for the operation of your church. Unfortunately, you can’t deduct all the food that you…
What is mileage reimbursement?
What is mileage reimbursement? Mileage reimbursement is the reimbursement you receive for using a personal vehicle for ministry purposes. The reimbursement covers all costs of owning and driving your vehicle for the qualified miles. The IRS mileage reimbursement covers the use of specific vehicles, namely: cars, vans, pickups, and panel trucks. Mileage reimbursement is normally…
Pros and cons of healthcare sharing ministries
Pros and cons of healthcare sharing ministries Like any health benefit, healthcare-sharing ministries have their pros and cons. This section will break down the major advantages and disadvantages of healthcare ministries so you can make the best decision for you and your organization. Pros of healthcare sharing ministries While low costs are a perk of…
Benefits of offering an HRA
What are the benefits of offering an HRA to our employees? You are most likely considering an HRA because you have decided to lower your health plan expenses by not providing your employees with group health insurance. The HRA will provide financial assistance to cover their eligible out-of-pocket healthcare expenses. Health reimbursement arrangements (HRAs) are…
Who should consider converting to a Roth IRA?
Who should consider converting to a Roth IRA? You must pay income taxes on any converted funds in the year of the conversion, but there are several scenarios in which that might be to your advantage: You believe your tax bracket will be higher in retirement. In this scenario, paying taxes at your current tax…
IRC Section 127: Tax savings on student loan repayment assistance
CARES Act expansion of IRC Section 127: Tax savings on student loan repayment assistance Under Section 127 of the Internal Revenue Code (IRC), employers are allowed to provide tax-free payments of up to $5,250 per year to eligible employees for qualified educational expenses. To be considered qualified, payments must be made in accordance with an…
Employee Benevolence
Employee Benevolence When it comes to benevolence, the IRS makes a distinction between providing donations to people who lack the basic necessities of life (food, water, shelter, etc.) and awarding gifts to your employees. Gifts to the Needy Generally speaking, if your organization provides benevolence to someone in poverty or temporary distress, the IRS considers…
