Understanding Clergy W-2 Form
Understanding Clergy W-2 Form By January 31st, an employer must give or mail an employee’s copies to each employee from whom the tax was withheld during the year or wages paid for services. For employees whose employment ends before the end of the year, W-2 Forms can be supplied any time after employment ends, but…
Nontaxable income for clergy?
Nontaxable income for clergy These are examples of sources of income that are non-taxable: • Qualified love gifts (person-to-person and within limits) Cannot be solicited Must be spontaneous in nature Must be clearly ascertainable as a gift with no service attached Cannot qualify as a tax donation for the donor Are motivated out of affection…
Should we have a COVID section in our employee handbook?
Should we have a COVID section in our employee handbook? While COVID will continue to affect our workplaces for some time, we generally recommend not adding COVID policies directly to your handbook. Guidance from the Centers for Disease Control and Prevention (CDC) continues to evolve, and federal and state laws related to the pandemic will…
What Are Credits and Deductions For Tax Purposes?
What Are Credits and Deductions For Tax Purposes? Tax documents are currently arriving in mailboxes and inboxes, reminding us all that tax season is rapidly approaching. A recent blog article discussed the subject of what is income for tax purposes. This article will give a brief and broad overview of what credits and deductions are…
Reporting the Housing Allowance
Reporting the Housing Allowance The designated housing allowance may be reflected on Form W-2 in Box 14 with the notation, “Housing Allowance.” Though not required, this reporting method is suggested by Publication 517. Or, a church can report the designated housing allowance to a minister by providing a statement separate from Form W-2. This may…
Do you need help with estimated payments?
Is this your first ministry position? Are you moving? Have you had a change in your compensation? Let us calculate your estimated payments or optional withholdings. This service will ensure that your tax liabilities are paid on time and no surprises at the end of the year. Estimated Payment Support Clergy are subject to estimated…
Do managers need to be classified as exempt?
Do office managers need to be classified as exempt under the Fair Labor Standards Act? No, it’s fine to classify office managers as nonexempt. You are under no obligation to classify any employees as exempt, even if they meet the criteria under the Fair Labor Standards Act. You could have an entire workforce of nonexempt…
What is Considered Income For Tax Purposes?
What is Considered Income For Tax Purposes? Tax season is right around the corner. Employers are preparing and sending out W2 forms to their employees and 1099 forms to their contractors. Individuals are receiving a wide variety of tax-related documents. A threshold issue for proper individual tax reporting is understanding what is considered taxable income….
ICHRA Reporting Requirements
ICHRA Reporting Requirements Individual Coverage Health Reimbursement Arrangements (ICHRAs) first became available in 2021. ICHRAs allow employers to reimburse employees for individual health insurance coverage (or Medicare coverage) that employees obtain on their own. ICHRAs provide employers with an alternative to offering traditional group health insurance coverage to employees. Although ICHRAs may not be a…
Quarterly Estimated Tax Payments – Q4 Reminder
Quarterly Estimated Tax Payments – Reminder If you are making quarterly estimated tax payments to the IRS, the due date for the September 1st – December 31st, 2021 quarter of the year is January 18th, 2022. You may be able to skip the January 18th payment if you file your 2021 return by January 31st,…
