Taxes

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...

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 Staff are taxed differently than secular employees and this treatment is mandated by law. It isn’t optional,...

Many employers hire third-party payroll service providers to perform their payroll processing functions and tax-related duties, including making employment tax deposits. Watch Monitoring your outsourced payroll duties on EFTPS to learn about: Using an EFTPS Inquiry PIN to monitor tax deposits The benefits of creating a...

WASHINGTON ― The Internal Revenue Service is reminding employers that the deadline for filing employee Forms W-2, Wage and Tax Statement, for calendar year 2017 is January 31, 2018. This includes Forms W-3, Transmittal of Wage and Tax Statements. In addition, reporting payments to contract workers...

The IRS has announced the following cost-of-living adjustments affecting dollar limitations for pension plans and other retirement-related items for the 2018 tax year [IR 2017-177; Notice 2017-64, 2017-45 IRB ]. Elective deferrals. The limitation on the exclusion for elective deferrals under Code Sec. 402(g)(3) will increase...

The Social Security Administration (SSA) has announced that the maximum earnings subject to Social Security (OASDI) tax will increase from $127,200 to $128,700 in 2018 (an increase of $1,500) [SSA News Release, Social Security Announces 2.0 Percent Benefit Increase for 2018, 10/13/17; SSA Fact Sheet, 2018 Social Security...

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...

Payroll and taxes are a necessary evil for all businesses if they want to stay afloat. Payroll Partners wants to remind existing clients of the following payroll taxes paid and reports filed on a quarterly basis: Employer’s Quarterly Federal Tax Return (Form 941)   Filing the Form: Form...