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.

Apr 23, 2019

Do I include the pastor in the "Number" of employees on line one or do I just include the non-clergy employees?

We have only 1 employee in our church, the secretary. The pastor is self-employed, but elects voluntary withholding. When completed my 941, do I only

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Apr 23, 2019

Reporting Housing Allowance

I agree with your reasoning. Are ministers to receive a W2 with only housing allowance listed in Box 14? I did read the answer to this question in a submission

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Apr 17, 2019

Vickeys Bookkeeping Services for Churches

Vickeys Bookkeeping services include bookkeeping for churches and small nonprofits. Contact for more details on our 3 different customizable levels of services.

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Apr 13, 2019

How to report 100% Housing allowance

If a church were to pay its pastor a small amount and designate it all as housing allowance, such as in your $500 / month example above, how would it be

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Apr 13, 2019

Moving monies between funds

Thank you for all of your help using QB within a church. We have been using QB for a couple of years. My question: we recently moved monies out of

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Apr 13, 2019

where do I place housing allowance on my IRS form

Where do I place my housing allowance deduction on my IRS form as it is included in my salary?

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Apr 13, 2019

The church pays the half of the pastor's tax.

My church pays half of the taxes of the pastor quarterly. I know the financial support for his tax from the church should be added to his income. What

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Apr 13, 2019

Sweep Account set up in QUickBooks

Can anyone please explain how you have set up a sweep account in Quickbooks? I had found through some research, that it was to be set up as a sub bank

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Mar 31, 2019

How to Spot Bookkeeper Errors for a Church or Nonprofit Organization

Bookkeeper errors are hard to spot for many church administrators. See what to look for to know if your bookkeeper is keeping your books correctly.

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Mar 31, 2019

Ordained Minister part of the year

I work for a church we have a pastor that was ordained part way through 2018 does he have to pay SE taxes of the full amount of his pay? Or pay SE only

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Mar 25, 2019

Should minister 401k contributions be included in SS and Medicare wages on W2

For regular church employees, the ss and med wages is increased by their 401k contributions on the w2. Should the ministers' contributions be as well?

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Mar 18, 2019

Principal payment from designated fund

I am making a principal loan payment. I am crediting operating account, debiting designated fund. I am creating the journal entry to reduce the long term

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Mar 18, 2019

Church car use by the pastor for church business and personal

Should the Car maintenance and gas fall under the Pastor's benefits or Church Operating Expense on the budget item line?

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Mar 15, 2019

State tax law and minister housing allowance

I understand that the IRS allows that housing allowance is not included in gross income. But what about state tax laws. Do they follow the IRS guideline

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Mar 12, 2019

Housing Allowance for Ministers

A housing allowance is a great tax benefit for ministers. See how to set up and administer this allowance. Q and A forum.

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Mar 10, 2019

W-2 or 1099

I am a church secretary and also a member of the church. Should I receive a 1099 or a W-2?

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Mar 10, 2019

Expenses

Can I deduct Expenses on a Sch C for SE even if I a paid on a W2?

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Feb 24, 2019

"designating all salary as housing allowance" debate rages on

Our small church is lucky enough to own a parsonage. How much would that affect designating funds as housing allowance? The fair market value is quite

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Feb 24, 2019

Housing allowance for non-church 501 c 3 organization

A chaplain created a 501 3 c for his chaplaincy ministry. Can that ministry board designated a housing allowance for the chaplain?

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Feb 24, 2019

Major Appliance purchases

When an appliance is purchased on a payment plan, when does the expense become part of housing? The full amount at the time of purchase or the monthly

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Feb 24, 2019

online banking

A retired businessman thinks our church can save money by using on-line banking to pay our bills. But we are concerned about a paper trail for audit

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Feb 24, 2019

Pastor Filing 1099

This is our first year that our Pastor has received an occasional stipend from our church. How do we go about reporting this #1 for our Pastor and #2

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Feb 09, 2019

W2 with no wages but only housing allowance and federal tax withheld

This is my first time filing taxes as a bivocational pastor. I only take a housing allowance from the church. I had them withhold federal taxes on

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Feb 09, 2019

Child care costs

Our worship leader performs the task as a ministry to the church (he takes no salary). However, he has asked for child care reimbursement, as the time

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Feb 09, 2019

Pastoral Education Reimbersement

We have a salaried Youth Pastor who is working toward his divinity degree. As part of the agreement the church has with him, he is reimbursed for any school

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Feb 06, 2019

Housing Allowance Approval

Is there a process to get approval from the Federal Government before claiming housing allowance? Some sort of form to submit?

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Feb 06, 2019

Reimbursement of Church Expenses

We received donations from church members for a reimbursement of a mission leader appreciation dinner. I do not know how this should be added to QBO!

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Feb 06, 2019

Refunding a restricted donation

Does anyone have a sample of a letter to go along with a refund of a restricted donation that was requested by the donor?

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Feb 06, 2019

Events Income

We are trying to make sure our chart of accounts is categorized correctly. Besides our tithes and offerings, which we categorized as non-profit revenue

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Jan 25, 2019

w2 box 1 troubles

I am using the social security on line site to file the w2's for our pastors who receive $24000 and $20,000 annual compensation which is all designated

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