IRA distributions are treated differently for tax purposes (for the donor) and should not be lumped together with regular contributions. This document provides more information about how to acknowledge those […]
How does our church determine what mileage should be reimbursed for our pastor?
The primary concern in this issue is where is the pastor’s primary work location? Home office: If the primary location is a home office, then all business mileage from that home office […]
Our church provides an allowance for our pastor or lay staff to buy their own health insurance. How should we be handling this allowance?
Some local churches provide their clergy or lay staff with cash allowances to purchase health insurance coverage outside of the NC Conference Blue Cross Blue Shield group health plan. Administration […]
What should our church include in the year-end statements we send to our donors?
Churches sending acknowledgement letters to their donors should remember the following substantiation requirements held by the IRS. Please reference IRS Publication 1771 for more information on record keeping rules and what to include in […]
How does my church determine whether to treat a worker as an employee versus independent contractor, thus receiving a W-2 or a 1099, respectively?
There used to be a 20-point test for determining the status of a worker as an independent contractor versus an employee. While the IRS has done away with that test, you can […]
Should our church’s organist be considered an employee or a contractor? Do we have to report his income on a 1099 or W-2?
Each person who receives payment for services rendered in a church should be evaluated to determine if they meet the requirements to be considered an employee or a contractor for […]