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, 2020

Top 5 Church Payroll Mistakes

Church payroll mistakes can be costly. Learn what to do and what not to do!

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Feb 05, 2020

W3 reporting form for Pastors W2

if a pastor opts out of FICA, what does the church check on kind of filer on the W3. The church doesn't file a 941 or 944 report because there is nothing

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Feb 05, 2020

Clergy retirement plan

The company pays for our Pastor's retirement plan, do I check the retirement box or leave blank?

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Feb 05, 2020

How Do We Report Insufficient Salary?

We approved our Full-time Senior Pastor for a $36K 2019 Compensation package: $18K Salary/$18K HA but the church could only afford to pay him a little

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Feb 05, 2020

Pastors Housing Allowance Annual Designation

If the housing allowance remains the same each year does it have to be recertified each year ?

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Feb 05, 2020

Can an ordained minister not receiving income from a ministry still claim housing allowance

My husband is an ordained ministry with a full-time non-ministry job, and also has a ministry to incarcerated inmates. He performs ministry part-time

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Feb 05, 2020

housing allowance is more than pastor earned this year

our pastors wages for 2019 were 21,250.00, his housing allowance is 24,000.00. how do I show this on hisw2?

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Feb 05, 2020

Accounting software for small non-profit group

I am considering purchasing an accounting software for my non-profit group. Our monthly transactions are between 5 - 15 entries per month. What do you

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Feb 05, 2020

Paying half of ministers health insurance deductible...taxable?

we as a church pay half of ministers $2500 medical insurance deductible. This is not done through the insurance company it is part of our agreement with

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Jan 20, 2020

Can you buy a desktop version of Aplos and if so, what is the cost?

Can you purchase Aplos church software in a desktop version and if so, how much is it and does it come with any support?

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Jan 19, 2020

Is it illegal in the state of TN for a church to pay its bills with cash?

I recently tried paying the church I serve as pastor’s bill at the local Christian bookstore and was told it was against the law in Tennessee for a church

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Jan 19, 2020

Membership Loan

We have allowed members to borrow money from the church without interest. They pay the loan back. I wanted to know if this is legal? When they pay the

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Jan 19, 2020

We have an interim pastor should we issue a W2 or 1099 for his services?

We have an interim pastor should he receive a W2 or 1099 for his services?

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Jan 19, 2020

When renovating clergy home, is temporary housing in an apartment acceptable allowance?

When renovating clergy home, is temporary housing in an apartment an acceptable allowance?

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Jan 19, 2020

employers contribution to 403b

I am preparing W-2s for the pastors in QuickBooks and it is NOT including the Employers 403B contribution in box 12 on the W-2. Is this correct? It is

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Jan 19, 2020

Two pastors Two amounts of housing allowances-How to Handle

One pastor needs $1,000 and the other needs $2,000, so if the board wants to pay the lower amount to both, how is the higher expense pastor to handle the

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Jan 19, 2020

Reporting a Housing Allowance Only

We are a very small church, 20 in attendance on a Sunday, we only give our pastor a small housing allowance. Does a W2 need to be done for this? If so

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Jan 19, 2020

Housing Expenses for More Than One Home?

When retired may a minister include housing expenses for a primary and secondary (seasonal) residence?

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Jan 15, 2020

Recording church member cash gifts

We are in encountering a situation that we don’t have an answer for. For an example. Our youth ministry has a budget for $1,000. A couple then donates

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Jan 08, 2020

1099 to S Corp instead of indiviual

We have an interim minister that we paid as a contract employee. I was planning on issuing him a 1099. He has asked me to issue the 1099 to his wife's

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Jan 08, 2020

Are minister's predetermined charitable contributions to his own church not included in taxable income on W2?

I have a new client who is a minister. He has made an agreement with his church that they will take a predetermined amount from his salary, donate it to

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Jan 08, 2020

Endowment donation

We received an endowment from a former member. The check reads endowment. Does this mean the church cannot touch the principal of the donation and can

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Jan 08, 2020

Can our pastor be paid in cash for his housing allowance as a one time yearly payout?

Can our pastor be paid in cash for his housing allowance as a one time yearly payout?

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Jan 01, 2020

Gifts for Volunteers

Need clarification please! Confusion over employee or not? If we were to give the children's church leader and the choir director (both volunteers

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Jan 01, 2020

Christmas Bonus

We gave our pastor a small Christmas Bonus. My question, is all of the bonus taxable income and nothing from it goes into his Housing Allowance? I'm

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Jan 01, 2020

Servant Keeper Interface with QB Desktop

Has anyone successfully interfaced Servant Keeper Contribution module to QB using the QB class code to track funds? It seems that SK only tracks to an

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Jan 01, 2020

How to process entries in Quickbooks for cash kept in the safe

Our church keeps some cash in the safe for approximately 2 ministries. We do not deposit these funds in any of our bank accounts. We're keeping track

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Jan 01, 2020

100% salary as housing allowance would look better for a NON-bivocational preacher?

Personal observation: I believe that in order for a church to designated all salary as housing allowance, their qualifying minister should be bi-vocational

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Dec 16, 2019

Do you pay taxes on insurance reimbursements

Does the Pastor have to pay taxes if a small church gives an allowance to cover insurance premiums (health and life) ? Thank you

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Dec 16, 2019

Is there such a thing as “Deferred Housing Allowance”??

I am well aware of what the “ministers housing allowance“ is… But we have also been informed, and utilize something called a “deferred housing allowance“

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