Nonprofit and Church Accounting Blog

This accounting blog...

  • informs you when any new web pages appear on my site,
  • shows you the latest question, comment, or tip posted by readers...(please feel free to browse the questions below and answer the ones you feel comfortable answering),
  • let's you know when an error is found in my free financial spreadsheets and how to correct them.

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Feb 20, 2017

FT Pastor with approved 4361. Still needs to pay SE taxes on secular work?

My husband is a full time pastor and has been for years. He also has an approved form 4361 exemption from SE taxes for his work performed as a minister.

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Feb 17, 2017

Retreat monies

The marriage leader from our church decided to pay in advance a deposit to the main speakers for our marriage retreat. He also paid the deposit at the

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Feb 17, 2017

How does dual status not violate the separation clause or fourteenth amendment of the U.S. Constitution?

It would seem to me that by considering ministers as dual status as opposed to considering them as singular status that it would have the effect of imposing

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Feb 17, 2017

Payroll and Tax returns

I don't see anything about payroll and tax returns. I use QuickBooks and they take care of all that.

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Feb 14, 2017

Info on w2

The business manager of the church withholds federal and state, pays FICA and also wants to include housing allowance. I want to be sure that this is

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Feb 14, 2017

Software for churches with operating budgets between $1 million and $2 million

Thank you in advance for your assistance. I am researching new financial and membership software for my church. I thought QB might be a good fit but

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Feb 09, 2017

Recording and reporting of depreciation under fund accounting using QuickBooks

Capital asset fund reports assets, liabilities, revenue and expenses related to the acquisition and amortization of capital assets. This is written in

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Feb 09, 2017

Relief from the Affordable Care Act for Most American Churches

In December 2016, the Obama Administration and Congress agreed to give ACA relief for small American employers.

Until the 2013 regulations of the ACA, churches provided pre-tax health care coverage by directly paying (or reimbursing) employees’ actual health care expenses under what was referred to as a HRA. Now, under the “21st Century Cures Act” churches may return to providing coverage in a similar manner.

The new format, “Qualified Small Employers Health Reimbursement Arrangement” (QSEHRA), has modest thresholds.

1. The employer must have fewer than 50 Full-Time Equivalent employees.

2. The employer must not have a Group Health Plan.

3. A formal QSEHRA written plan must be in place.

Until this legislation was passed only churches with “fewer than two” members had a reasonable path to provide health care coverage. Now that population is expanded to 49.

Churches may now provide employer paid pre-tax coverage to its employees of up to $4,950 for a single employee, and up to $10,000 for a family.

Call Bill OConnell at 617-921-9321 for more information.

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Feb 09, 2017

Contributions made for new hospital bed for sick church member

Forgive me if my question is 'a given' ... but in reading the posts I was prompted to something we recently did in our church for a congregant. He is

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Feb 09, 2017

Pastor Supplemental Salary Fund

Our current pastor is part time (roughly 50%-salary $27,000) and teaches school to help ends meet. We recently received a large stock distribution that

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Feb 09, 2017

Borrowing money from members

Last year, multiple members of the church loaned money for the purpose of buying the property next door. We have been making payments back to those members,

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Feb 08, 2017

Is a W-2 necessary?

My church only pays me a housing allowance (no regular wage/income). Getting a W2 that has $0 for wages messes up my ability to electronically file.

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Feb 08, 2017

Aplos Software for Church and Nonprofits

Aplos Software recommended by FreeChurchAccounting.

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Feb 08, 2017

Mileage not paid

We needed to remove the mileage our pastor was being paid due to the church budget crunch. He would like to get credit for that mileage as his tithe since

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Feb 06, 2017

Minister's Severance Pay on W-2

I was a minister of a small local church. The church closed its doors and gave me 6-months severance pay. On my W-2, they did NOT include the amount

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