People work for churches because they feel a calling on their life. Many of these people work with limited resources and rely on volunteer (free) labor to get the job done. Church staff will rise to this challenge because of their passion for the church mission. This...
Pastors and clergy are among those individuals who will be eligible to receive the COVID-19 vaccine when state officials expand to the next phase of vaccinations. In accordance with federal guidelines, state officials are making vaccines available by groups. North Carolina is currently vaccinating groups 1 and...
Payroll and taxes are usually a confusing topic for businesses who can easily find themselves in trouble with the IRS if payroll taxes are not reported correctly. For churches and places of worship, payroll taxes can be especially tricky due to the dual-tax status of...
Most churches often struggle with “employee classification” usually with their musicians, nursery workers, secretaries, custodians, etc. Generally, the IRS looks at three areas: Behavioral Control, Financial Control, and Type of Relationship. In most cases, church musicians do not pass the test of being an independent contractor...
When it comes to political activity, churches need to maintain neutrality or risk losing their tax-exempt status. There are two distinct limitations in the tax code. First, churches may not engage in substantial efforts to influence legislation. Second, churches may not participate or intervene in any...
If your church has made the difficult decision to reduce staff levels, you may find yourself scrambling to ensure proper accounting checks and balances with fewer employees. An effective accounting control system is dependent upon proper and adequate segregation of duties. Accounting tasks, particularly those involving...
In the complicated world of ministerial pay, it is important to know that pastors and other ordained employees can receive a certain amount of money in compensation for basic living expenses. This is called a housing allowance, also known as a parsonage allowance or a...