Clergy

As part of the Tax Cuts and Jobs Act that went into effect in January 2018, there is a new “parking tax” that applies to nonprofit organizations, including churches. The new regulation creates unrelated business income tax on qualified transportation fringe benefits, including employer-provided parking. Accordingly,...

Start saving time and avoid costly errors by automatically calculating total hours worked. Here are five time-saving things your church can do when implementing time sheets or a time clock: Collect employee data faster — There’s nothing more frustrating to a payroll administrator than waiting for, or chasing down, employees...

Only Ministers for Tax Purposes are eligible for a housing allowance on their ministerial earnings. Church custodians, secretaries and ministerial staff who are not Ministers for Tax Purposes are not eligible for a housing allowance. A church may call someone a minister, but the IRS may...

Generally, any expense to provide or maintain the home can be used to justify the housing exclusion. Regulations do specifically state that expenses for groceries, paper products, personal toiletries, personal clothing, and maid service cannot be used. You may legitimately include the following: Rent, principal...

Churches are required to classify each person that is hired as either a secular or clergy employee. This is a very crucial step in the hiring process. Clergy are taxed differently than secular employees and this treatment is mandated by law. It isn’t optional, so...

Pastors, Ministers and other Clergy Staff are subject to estimated federal, social security and state tax payments on a quarterly basis. For example, when you receive clergy income in the first quarter of the year, the taxes are due at the end of that quarter. The...

We’re past the halfway point of the year, which means this is an optimal time to check up on pastoral housing allowances, whether you receive one or you set one or more for other qualifying ministers. Specifically, a mid-year review will help determine whether the allowance...

For qualifying ministers, the housing allowance is an invaluable tax benefit—in fact, according to attorney and Church Law & Tax senior editor Richard Hammar, it’s “the most important tax benefit available to ministers.” In October 2017, however, a federal judge in Wisconsin ruled the ministerial housing...

The most important tax benefit available to ministers who own or rent their home is the housing allowance exclusion. To the extent the allowance represents compensation for ministerial services, is used to pay housing expenses, and doesn't exceed the fair rental value of the home, including...