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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Jan 20, 2017

Allocating Housing Allowance

Our pastor passed away the first week of May 2016. He was projected to have an $18000 housing allowance that we would have deducted from his gross salary.

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Jan 20, 2017

Does the church have to file a 941?

The church has only one employee, the minister. They do not withhold any taxes but they give the minster a W-2. Does the church have to file 941? Vick

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Jan 19, 2017

Can I write off the fair rental value for my parsonage allowance if I am living rent free in an apartment my parents own?

Can I write off the fair rental value for my parsonage allowance if I am living rent free in an apartment my parents own? We are on deputation as missionaries,

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Jan 19, 2017

Pastor's Flexible Spending Account (FSA)

Our pastor and one other employee has money deducted each month to put into a FSA (Flexible Spending Account). How does this deduction get shown on the

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Jan 19, 2017

How would you treat QCD contributions to General Fund

How would you treat and report QCD (Qualified Charitable Distribution) that go to the general fund. In our contribution tracking software the general

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Jan 17, 2017

FICA vs. SECA?

Our church employs several part-time pastors, not all are ordained/licensed ministers. Does the law forbid the church from withholding FICA for the

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Jan 16, 2017

employer paid contributions to a pastors retirement

Where do I include on w-2, if anywhere, the employer's contribution to our pastor's retirement plan?

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Jan 16, 2017

amount of cash salary to include in box 1

We have a very small church, of which I am the treasurer. Our pastor gives us a note with the numbers to write on his W2. We pay all of his utilities

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Jan 12, 2017

Housing allowance and construction of a new home

Our pastor has been living in a church-provided parsonage for years. He is nearing retirement. This year, he decided to build his own home. The

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Jan 11, 2017

Create a W2 for a Youth Pastor whose only compensation is living in church parsonage

Hi, Our Financial Secretary died suddenly and I am trying to do the W2's forms for 2016. I am not sure how to proceed with creating a W2 form for our

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Jan 11, 2017

Multiple W2s with Housing Allowance?

Can a pastor have housing allowance on multiple W2's? Even when not changing churches mid-year. Example: Pastor serves church and as a professor at

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Jan 10, 2017

Quickbooks Recording Income to Expenses Account

Let me give an example. The church pays $2100 for campground rental fee upfront. The members, once the camp is done, pays back the church for $2000.

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Jan 09, 2017

Pastors paying taxes

We are a small church of about 30, our pastor gets 40 percent of what the tithes and offering is but he has refused to pay taxes for 12 years. He calls

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Jan 09, 2017

Love offering and 1099

I was doing an internship at my church, and at the end of the internship, a member of the church gave a love offering to the pastor, his wife, one other

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Jan 03, 2017

How do I correct an error in Box 2 of Form 941?

I entered the Minister's Housing Allowance in 2 Wages, tips and other compensation of Form 941 and mailed them to the IRS. How do I correct this?

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