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.
Feb 21, 2021
Health Insurance
We have a new Sr. Pastor coming this May. Included in his financial package is an amount to cover health insurance for him and his family. Is this amount
Feb 21, 2021
Retirement Benefit and Payroll
Should I run the Pastor's retirement that the church pays, through his payroll? Our church provides a retirement benefit for the pastor. The church pays
Feb 07, 2021
Utility/Parsonage Exclusion
My Church gives me a utility/parsonage exclusion. Should that amount appear on the W-2 and where?
Feb 07, 2021
State Employer Identification Number
I am a new treasurer for our church which also has a new pastor. Our church has never given a W2 before. I have a federal tax Id number but not a state
Feb 07, 2021
Amounts excluded from income limited my Monthly amount or annual amount?
If a minister spends more in one month than is designated monthly, can it be considered part of the annual amount and still excluded from taxable income?
Continue reading "Amounts excluded from income limited my Monthly amount or annual amount? "
Feb 07, 2021
Can Box 1 include Housing Allowance?
I have previously read do not include clergy Housing Allowance in Box 1 taxable income so I know that's the recommendation. However, if this does happen
Feb 07, 2021
who needs to sign the letter for taxes purposes regarding a pastors housing?
who needs to sign the letter for taxes purposes regarding a pastors housing?
Continue reading "who needs to sign the letter for taxes purposes regarding a pastors housing?"
Feb 07, 2021
Property taxes of rental house which provides housing allowance
I live in Cook County, Illinois. Our church currently has a pastoral house which provides as the residence for our pastor. However, the pastor desires
Continue reading "Property taxes of rental house which provides housing allowance"
Feb 07, 2021
941 Form and W2 reporting for a Pastor
Our pastor's amount earned is broken down by his salary/insurance/housing. For the quarterly 941 form on line 2 for wages do I include his total amount
Feb 07, 2021
counseling
Our church sent a pastor to a retreat to receive personal counseling and the church paid for it. It is all business (church) related. Is that a taxable
Feb 07, 2021
Small Church & Forms 941/944
We are a very small church with two priests, both part time. We do no withholding of taxes for them but we do do a W-2 for them which is mainly a housing
Feb 07, 2021
Should I file a tax extension?
April 15th 2021 will be the “2 year deadline” for me to file so I will be sending mine in this month (Jan 2021). If it takes longer than 3 months to
Feb 07, 2021
How does a para church organization account for staff who raise their own support?
Is it an option to pay the staff as contractors and issue a 1099 to them? Or do they have to be employees and get W2s? And are there rules relating
Jan 11, 2021
Income and Expense Reporting for small church
I need a simple way to record Income (member donations) and expenses for a very small church (less than 50 members.) I am not a bookkeeper in all fairness.
Continue reading "Income and Expense Reporting for small church"
Jan 11, 2021
What EIN is a pastor's income reported under with mulitple churches for 941 and W2
We have one pastor with 3 charges. We are looking having one lead church that pays his monthly salary and then the other 2 reimburse the lead church for
Jan 11, 2021
Last year's Contributions
Can I add January 2021 contributions to 2020 contribution report?
Jan 09, 2021
No Form Subscribe
I have not been able to find the form to subscribe in order to download free spreadsheet. Can someone help?
Dec 24, 2020
Why not include housing allowance in W-2?
Is there some logical reason not to include housing allowance on the W-2 form? I know that the cleric is not required to pay income tax on the clergy
Continue reading "Why not include housing allowance in W-2?"
Dec 24, 2020
Gift of Parsonage to Preacher
The church gave the preacher the parsonage via a Gift Deed. Value of the house/property is about $215K. At year end, do we need to provide a 1099
Dec 24, 2020
When is a love gift not considered income and considered a gift tax?
Our church for decades has collected a free will offering at the end of the year to gift to our pastor. It does not go through the church books at all,
Continue reading "When is a love gift not considered income and considered a gift tax? "
Dec 08, 2020
Can churches give a gift to try to get more money for Lottie Moon?
We were wondering if to try to get more money for our Lottie Moon Christmas offering our church wanted to give a coffee mug to those who give and it doesn’t
Continue reading "Can churches give a gift to try to get more money for Lottie Moon? "
Dec 08, 2020
Financial Gifts to an Unsalaried Pastor
Our pastor is not full time and holds another employment. The church gave him a love offering and financial gifts throughout the year that totals more
Nov 18, 2020
online paperless billing conversion
I am attempting to set up online billing for the majority of our vendors. We have quite a lot and some may not have the ability. I am looking for some
Nov 18, 2020
Can home renovations be used for UMC household furnishings allowance?
We are planning on renovating the kitchen which would include new cabinets and counters. I have a housing allowance but am wondering if I can make use
Continue reading "Can home renovations be used for UMC household furnishings allowance? "
Nov 11, 2020
Year End Checklist for Churches
See a year end checklist for churches. Includes tasks that should be completed before the end of the year to ensure a smooth transition into the new year.
Oct 23, 2020
How to Handle Clergy Tax
Clergy tax factors you need to know before setting up your pastor's payroll or to ensure you are doing it right.
Oct 22, 2020
Opt Out of Social Security Form 4361
For a minister to opt out of social security there are several conditions that must be met before they can file an IRS Form 4361.
Oct 15, 2020
Love offerings taxable from other churches?
I recently left my position as a worship pastor at a church in Maryland and are relaunching a church in Arizona as the senior pastor. In the process,
Continue reading "Love offerings taxable from other churches?"
Oct 15, 2020
Taxable for Pastor, but tax deductible for giver?
I'm still unsure about this. I've read quite a few articles and most tend to agree that the love offering donations are taxable income for the Pastor who
Continue reading "Taxable for Pastor, but tax deductible for giver?"
Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!
Quick Links: Home | Blog | Newsletter | Free Spreadsheets
Products: Church Accounting Book | Church Accounting Package | Spreadsheet Package
Support: FAQ | Church Accounting FAQ | Contact
Site/Company Info: About | Terms of Use | Site Map
By Vickey Boatright Richardson Copyright © 2008-2020 All rights reserved
