Many religious organizations have made fixed sum monthly payments to their minister or other staff for a “travel or professional allowance” and do not request an accounting for how the money was spent. Allowance plans are always taxable are reported on Form W-2. It is...
Clergy
Employees and Contractors and Churches…Oh My!
Before you make your musician, tech guy, or childcare worker an independent contractor, check to see if they meet this test! The Biden administration has yet to determine the test for defining employees from contractors. But they are leaning towards California’s “ABC...
The 3 Required Steps for a Housing Allowance
As tax season comes to a close and your ministerial staff starts getting their returns, they might want to re-think their housing allowance for 2022. Here’s a quick “how-to” to simplify that process! To satisfy IRS requirements, churches are responsible for 3 key...