Church

If you’ve ever experienced payroll errors first-hand, you know the extensive costs and time-consuming efforts that go into correcting them. Even the smallest of payroll slip-ups can snowball into serious, long-term issues and increased expenses, especially if those mistakes continually occur. But when mistakes happen,...

I'm a Clergy Staff Member. Is My Social Security Allowance Taxable?   The short answer to this question is yes. Unlike non-clergy employees, clergy do not have Social Security or Medicare taxes taken out of their paycheck. The Church also does not pay any matching portion to IRS,...

Churches would not exist without the faithful contribution of their most valuable labor force – its volunteers.  Volunteers give of their time freely because of a passion for the ministry it serves. Showing volunteer appreciation is an important aspect of effective volunteer management.  However, keeping volunteers engaged and...

Have you considered conducting background checks as part of your hiring process? The practice is fairly typical within the church and for those who work with children, the elderly, or people with disabilities. If you’re wondering whether you should do so as well, check out...

Ministers Versus Non-Ministry Employees   Churches should make a careful distinction between their paid workers who are acting as ministers versus those who are non-ministry employees.  There are several considerations that can only apply to those who qualify as “ministers.” First, ministers can receive a clergy housing allowance,...

Setting up and managing payroll for a church can be complex. There are several questions a church should ask in order to stay compliant with tax and legal requirements. Does the church follow standard employment protocols?   Like any employer, a church should obtain and keep standard information...

Perhaps the most beneficial tax benefit available to a minister is the clergy housing allowance, which allows a minister to exclude permissible housing expenses from taxable income. Now that that the current year is more than half over, it is a good time for churches and...

No, you can change your housing allowance or designation at any time throughout the year, and you can amend it as needed. IRS details the housing allowance in section 107 of the Internal Revenue Code. While the IRS does not specify when you can designate, they...

The Clergy Housing Allowance is a portion of a Minister’s pay that has been designated to pay housing expenses. It is considered one of the best tax benefits currently available to Clergy because this portion of income can potentially be exempt from income taxes. In order...

If your Church is paying for your ministry-related expenses, it is important to know if you are being paid under an Accountable plan or a Non-Accountable plan. It has a huge impact on your 1040 taxes. Under an Accountable plan, you are reimbursed for expenses. If...