Travel can be one of the most problematic areas for many of your self-employed ministers. The crux of the matter is defining when a drive is a commute and when it’s a deductible travel expense. This definition depends crucially on the minister’s principal place of ministry. Driving...
There are no standard amounts for housing allowance as a whole. The IRS guidelines say to use the fair market rental value of your housing and housing expenses (i.e., gas, electric, cable, etc.). There are housing allowance worksheets to help pastors figure out the...
While Internal Revenue Code is definitely not the most exciting topic, Section 107 is good to know as it does offer some benefit to ministers. This is where the minister’s housing allowance is addressed. Here it is: “In the case of a minister of the gospel,...
As a church leader, addressing an employee’s fluctuating performance or initiating conversations about termination is an undesirable part of the job. However, these conversations don't have to be uncomfortable or awkward. Difficult dialogues can be successful and fruitful when done right. Here are 4 strategies to...
Though most churches don’t often employ fully remote staff members, you likely have staff that enjoy the benefits of occasional remote work: think of the pastor meeting a congregant for lunch; the worship team that plans at a local coffee shop; the children’s director that...
If the church or religious organization reimburses or advances the employee for business expenses, but the arrangement does not satisfy the three requirements of an accountable plan, the amounts paid to the employees are considered wages subject to FICA taxes and income tax withholding, if...
A church or religious organization is treated like any other employer as far as the tax rules on employee business expenses. The rules differ depending upon whether the expenses are paid through an accountable or non-accountable plan, and these plans determine whether the payment for...
Summer months aren’t too far away and college students everywhere are already searching for that perfect internship to help build their resume. Besides the college credit, though, internships help develop and grow the next generation of ministry leaders. So how do you set them up...
According to the Equal Employment Opportunity Commission (EEOC), you should count every employee who has worked for your organization during at least 20 calendar weeks in the current or previous year. And those 20 weeks don't have to be consecutive; the individual could have worked...
Generally speaking, a deductible ministry expense must be “ordinary and necessary” for it to count as a write-off. Ordinary and necessary simply means it’s a common expense for someone in the ministry, and it’s essential for the operation of your church. Unfortunately, you can’t deduct all...