Fraud

Each year, the amount of money stolen from churches exceeds what churches give to missions.  Let than sink in. 30% of churches are the victim of fraud/embezzlement each year.  Most are never detected and when it is 80% does not get reported to law enforcement.  The loss was $39 billion in

Form 1099-NEC or Form 1099-MISC

Historically, when you have paid $600 or more during a year to a nonemployee, you were required to file Form 1099-MISC (using box 7) by January 31 of the following year.  This would include anyone who performed a service (non-employee compensation) for the church (independent contractors, guest speakers, etc.). Beginning in

Delano Sherley – Tax Law Changes

Tax Law Changes Here are changes to the tax code that were part of the CARES Act: If you were impacted by Covid-19 you can make an early withdrawal from a retirement account up to $100,000 without paying the 10% penalty. You do, however, have to pay the income tax (now over a

Delano Sherley – Tax Refunds

Tax Refunds 75% of Americans received a refund last year, with an average refund of $2,881. You’ve heard it before but let me remind you – getting a refund is essentially giving the government an interest free loan. Many use a large refund as a way to set aside money for

Delano Sherley – 2020 Mileage Rates and HSA Limits

The IHS has released the new mileage reimbursement rates for 2020.   For business related travel, the new rate is $0.575 per mile (down from $0.58 last year).  Driving for medical may be deducted at $0.17/mile (down from $0.20 in 2019) and mileage for service to a charitable organization is unchanged

Delano Sherley – 2020 Retirement Contribution Limits

  The Treasury Department has announced the 2020 limits for retirement accounts: The amount you can contribute to your 401(k), 403(b) or similar retirement plans goes up from $19,000 in 2019 to $19,500 in 2020. The 401(k) catch-up contribution limit—if you’re 50 or older—will be $6,500 for workplace plans, up from $6,000. Those

Delano Sherley – Tax Scams

Tax scams run year-round. You may receive a telephone call claiming to be someone from the IRS. The call usually includes a threat that the police are on their way to arrest you, unless you pay immediately using a debit or prepaid card. They may also ask for your banking

Delano Sherley – Health Insurance Update

Starting January 1, 2020 employers can offer a new HRA called the Individual Coverage HRA, or ICHRA. This allows you to reimburse (tax-free) employees’ health care premiums and other medical expenses, up to a dollar limit you choose. You can also offer a regular group health plan to certain employees

Delano Sherley – Donated Stocks

Delano Sherley Is your church set up to receive donated stocks? Donors may prefer to donate stock directly to the church, rather than sell and donate the cash. By donating the stock directly, they get a charitable donation for the current market value of the stock, while avoiding capital gains tax