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
It is time to do my taxes as a minister. What do I need to do to ensure I utilize my efforts with my tax preparer so as to have the least possible tax liability?
First, you need to consult with your tax preparer ahead of time to be certain you
I understand there are several changes in the tax law that could affect a minister’s filing. Can you provide some of these?
Yes, as always, there are changes in the tax law. Highlighted below are some of these.
The educator expense deduction of up to $250 has been extended for 2015.
I am a full-time evangelist and drive from church to church for services. Can an evangelist have a housing allowance and if so, how is this established?
Yes to your question. First of all, however, you need to be sure you have an established residence. For example, if you live in
Every year we provide bonuses and gifts to our employees at Christmas time. Is there any way to give these and not include the amounts on the employee’s W-2 forms as taxable income to them?
According to the current regulations, any bonus paid to an employee is considered as normal income
Recently, I received a phone call from a person stating they were with the Internal Revenue Service. The individual stated that I owed back taxes and that the IRS was about to sue me for the payment of those taxes. Is this legitimate or just a scam?
First of all, the
I have been pastoring for about eight years and as of yet have not set up any type of retirement plan for myself. I understand that the church can fund certain type plans or I can wait until I retire and the church can set up some type of self-funded
What is necessary to ensure that the church legal and accounting documents are current and up-to-date? I don’t want to get involved in possible litigation and be vulnerable by not having all the church records in order.
Maintaining the proper records is not difficult. Our recommendation is as follows:
Be sure your
I have recently resigned as pastor of a church and will be moving over 500 miles to another church. What are the rules for moving expenses? Can I claim these on my tax return?
According to the regulations, you can deduct a portion of your moving expenses incurred because of a
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
By Aubrey Jayroe
I understand that there was a court ruling several months ago that questioned the constitutionality of the clergy housing allowance. Has anything transpired regarding the clergy housing?
Yes. A judge in Wisconsin declared the clergy housing as unconstitutional several months ago. Fortunately, however, this has changed.
The decision was appealed