Q: What is an appropriate way to reimburse travel expenses to our employees? A: In order for travel reimbursements to be non-taxable to the employee who incurred the expenses, the employee must report expenses in accordance with an accountable reimbursement plan. An...
IRS Form W-4, Employee’s Withholding Certificate, is designed to help employees and employers withhold the correct federal income tax from an employee’s wages. If too little tax is withheld, the employee will generally owe tax when filing their tax return (and...
The holiday season is great time to show appreciation to the employees who serve the church faithfully throughout the year. While flowers, gift cards, and other tokens of appreciation may not cost a lot of money, the gift may actually result in taxable income for some...
In 2021, the IRS introduced a new form that churches should use when reporting nonemployee compensation—the Form 1099-NEC, Nonemployee Compensation (NEC). For many churches, the 1099-NEC became the primary form used to report compensation paid to contractors, vendors,...
Q: What is the difference between IRS Forms W-2 and 1099, and what are some key issues for each form? A: Both of these forms are frequently used by churches and other businesses to report compensation and wages. In simple terms, one is used to report compensation paid...
A pastor recently contacted me and said, “The IRS just sent us a letter saying we failed to submit form 941 for the 3rd quarter of last year. What is this form, and were we supposed to send one in?” Maybe your church also received this letter recently. You’re not...
It’s tax time again. April 15 is normally the day that most of us have to file our personal tax returns and pay our tax obligations. While you’re thinking about filing your tax return for the past year or planning for next year, here are some practical ways...
Before the start of any new year, many churches go through the process to update their budgets, plan their event calendar, and formulate their sermon series. The planning meetings, discussions, and thought behind the scenes are lengthy, intentional and well-planned....
Q: What is the I-9 Form, and do churches have to use it? A: The U.S. Citizenship and Immigration Services Form I-9 has been required since November 6, 1986 and is used to verify a new employee’s identity and employment authorization. A new version of USCIS Form...