IRS Tag

Flat Dollar Reimbursements Considered Taxable by the IRS

Employees often use their personal cell phones for church business. The church requires that they submit monthly expense reports and they’re reimbursed through an accountable plan. The church board wants to ditch the paperwork and just pay flat-dollar allowances to employees every month. Would that be...

02 May, 2019

Do You Need an Official Designation to Receive a Housing Allowance?

The allowance must be officially designated in advance by the church. The designation should be stated in writing, preferably by resolution of the governing body and/or in an employment contract. In addition, the designation should be recorded in the church budget and payroll records. If the only reference...

25 April, 2019

Estimated Taxes Form and Publication Can Help Clergy Staff and Others Pay the Right Amount in 2019

WASHINGTON –The Internal Revenue Service recently reminded self-employed individuals, retirees, investors and others who pay their taxes quarterly that the first estimated tax payment for tax year 2019 is due Monday, April 15, 2019, for most taxpayers. A 2018 tax return and 2019 Form 1040-ES,...

11 April, 2019

Tax reform brings changes to fringe benefits that can affect an employer’s bottom line

The IRS reminds employers that several programs have been affected as a result of the Tax Cuts and Jobs Act passed last year. This includes changes to fringe benefits, which can affect an employer's bottom line and its employees' deductions. Here’s information about some of these...

06 March, 2019

IRS to highlight tax reform changes affecting small businesses; Small business owners, self-employed should plan now for new changes

WASHINGTON – With just a few months left in tax year 2018, the Internal Revenue Service today urges small business owners to learn about how the new tax law changes may affect them. The Tax Cuts and Jobs Act, passed in December 2017, made tax law...

15 October, 2018

From the HR Support Center: Can We Require Exempt Employees to Clock In and Out?

While it doesn’t violate the FLSA to have an exempt employee clock in and out, it is recommended to only track exempt hours if there is a business reason to do so. There are some valid reasons for tracking exempt employee hours. For example, an employer...

12 April, 2018

How Long Do You Have to Retain Payroll Records?

The Social Security Administration and the IRS have issued a joint publication that offers valuable pointers for employers who want to clean up their old payroll files. In most (but not all) cases, that means following a four-year retention rule. The publication cautions that failure to...

22 August, 2017

The Differences Between Tips vs. Service Charges

The IRS has updated a fact sheet that explains the differences between tips and service charges [Fact Sheet 2017-8, 4/25/2017]. Tips Definition Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers. Tips include: (i) cash tips received directly from customers;...

18 August, 2017

From the HR Support Center: Can I Classify a Worker as an Independent Contractor?

Question: We want to hire an administrative assistant. Can we classify this person as an independent contractor during a 90-day try-out period and then, if they work out, hire them as a full-time employee at the end of the 90 days? Answer: The short answer is...

04 August, 2017

Understanding the Difference between an Employee and an Independent Contractor

Many businesses nowadays get in trouble for not properly identifying and differentiating employees from independent contractors. Defining what it means to be an employee or independent contractor can be tricky. According to the IRS, an organization must withhold income taxes, withhold and pay Social Security and...

04 April, 2017