We have individuals who work for the church, such as the janitor, lawn maintenance worker, and part-time music director. Can these individuals be classified as contractors and not as employees?
This is a very common question but one that demands our careful attention. The law is very clear as to who
There is a white-collar exemption in addition to the ministerial exemption as discussed last month. To be exempt from federal overtime rules, an individual must pass all three of the following tests. If an employee fails any one of them, the person is an hourly worker who is entitled to
Do church employees qualify for the new rules governing overtime and minimum wages?
In most cases, yes. In order to fully answer the question, there are rules we have to review to determine who qualifies. These rules are very complex and can be confusing unless understood completely.
The courts have created
I am interested in purchasing a ROTH IRA. What are the benefits for having this type of retirement plan?
A ROTH IRA is a good plan of investment for retirement for some people. First of all, not everyone can contribute to a ROTH because of the IRS imposed income limits. Your
I have been a traveling evangelist for many years. Are there things that I should be doing that will help me reduce my tax liability?
Yes. First of all, you should establish a housing allowance. The Code says that the organization in which you are a part of should set up
My husband, who pastored for many years, received a housing allowance from the church. He is now deceased and I am blessed that the church is providing some continuing income to me. Can I classify any of this as a housing allowance?
First of all, in order to receive a housing
I’m a new pastor. How do I go about establishing my compensation package in order to take advantage of all the tax breaks for ministers?
First of all, you have to know what the church’s bylaws state concerning the compensation of the minister. Some bylaws instruct the Board of Directors to
Who is directly responsible for the financial and legal obligations of the church? Is it a joint responsibility or individual responsibility?
This is a multi-faceted question. First of all, it depends on the various aspects of the church operation to determine who is responsible. Remember, the Board of Directors (which normally
What are the current regulations concerning health insurance being paid for by the Church?
Small employers/churches may need to change healthcare policy to avoid excise tax. Notice 2015-17 gave small employers (less than 50 employees) an extension to comply with the requirements of the Affordable Care Act; however, that extension is
I am recently retired as pastor of a great church. The church wants to pay certain items for me such as housing allowance and possibly reimburse me for church-related expenses. Is this possible and what is needed to set this up?
Yes, the church can establish and pay certain items for
I am a new pastor and have heard that I can have a housing allowance for the home I am presently buying. What do I need to do to ensure I receive the proper benefits allowed?
Code Section 107 provides for the clergy to have a qualified housing allowance. Anything designated
Why is it important that I review the church corporate records, by-laws, and resolutions periodically? If it is important to review these documents, how often should they be reviewed and changed or modified?
To think that the laws today governing churches would remain the same is certainly wishful thinking! Laws change