Why are clergy taxes so complex?
There are a number of different reasons for Clergy Taxes being more complex than the average return. First, Clergy are treated differently from every other employee in regards to their compensation. Clergy have a unique “dual status”- they are treated like employees for income tax, and they are treated like independent contractors for Social Security…
Employee Expense Reimbursements
The compliance and financial risks of mishandling employee expense reimbursements have spiked in recent years. And the IRS is in the middle of a wide-ranging audit crackdown on employment-tax issues. Would your books survive an IRS spot-check? Do you know which reimbursements for employee expenses should be treated as expenses … and which as compensation?…
Understanding Clergy W-2 Forms
In many smaller churches, the person in charge of preparing payroll or preparing W-2 forms is not always a payroll expert. They may not understand the complexities of clergy tax law or how compensation should be reported on the form. To help, Clergy Financial Resources has prepared a sample Clergy W-2 for reference, which you…
The Decision: Clergy or Non-Clergy
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
How Should I Get Reimbursed?
While working for a Church, you may have to pay some expenses out of your own pocket. This could be things like paying for gas while you drive to a distant location, or paying for office supplies, or paying for laundering ceremonial garments. Regardless of the expense, when you get reimbursed by your Church, you…
How to Properly Designate a Housing Allowance
Do you get paid an allowance for housing? Are you sure that it’s set up correctly? Double checking your housing allowance is an easy way to avoid annoying tax headaches later. In order to take a housing allowance, there needs to be proper documentation: A specific dollar amount or percentage of salary must be designated,…
Who Is a Minister?
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
Ministers Defined by the IRS
When a church hires an employee, one of the initial decisions that must be made is whether to treat the worker as clergy, non-clergy employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For federal…
Career Opportunity
Business Administration Specialist – Fulltime Is administration your thing but you would like a little something extra? This position will not only use your administrative and organizational skills, it also requires a level of social media savvy. Fast growing tax and payroll firm serving clergy and churches throughout the United States is in search of…
What Is Self-Employment Tax?
When a church hires a worker, one of the initial decisions that must be made is whether to treat the worker as a minister, non-minister employee or contractor. This decision may seem insignificant, but it has huge implications when it comes to payroll. Ministers have what is commonly referred to as “dual tax status.” For…