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Curious if you or your tax preparer is including your clergy income correctly? Wondering if your church even does your payroll right? Join Wisdom’s experts on the topic & get you questions answered!
Or, do you need the confidence that a CPA looked at your church’s books?
The term “audit” has been used in church circles to refer to having an CPA look at the books, exercise their professional judgment, and give accounting support. In the world of CPAs, a traditional audit requires many regulations and procedures that we have found many churches and nonprofits do not benefit from. We at Wisdom have found another option: Financial Statement Preparation.
Starting in July 2021 over 80 million American households become eligible to receive a new payment from the Internal Revenue Service. An increased child tax credit has allowed for monthly payments of $300 per child aged 5 and under, and $250 for each child aged between 6 and 17 to be sent as advances for the Child Credits found on next year’s (2021) Federal Income Tax return.
In the latest round of COVID legislation, the ERTC was made available to more businesses, including churches. The ERTC is a tax credit that’s rewards are two-fold: rewarding employers who have retained employees during COVID and thus providing cash to continue providing these jobs.
But churches do not pay taxes, how can they get a refund from the IRS?
Although churches are exempt from paying income tax, most churches do submit and pay in for payroll taxes. The ERTC is a credit against the Social Security taxes withheld by employers, including those taxes withheld by churches.
Congratulations! You have become a member of your church’s board. Now what?
What must I do? What must I not do? What is expected of me? What is my role vis-à-vis the Pastor, the staff, members, active volunteers, other board members?
Disorientation is a good word for how the disciples must have felt after the death of Jesus. The one they thought was the long-anticipated Messiah was now dead. Their hope was extinguished. What did this mean, where did they go from here?
Vertigo: “Confusion resulting from misleading information sent to the brain.”
Vertigo occurs in pilots when they fly in hazy conditions and lack any reference to the reality of the horizon. Without reference to objective truth, the horizon, it is possible for pilots to fly their airplanes into the ground while thinking they were flying level.
Church accounting systems can also suffer vertigo. Unless there is a connection to objective truth outside the system, the accounting may become out of touch with reality – possibly causing a crash to the ground.
To allow flexible work arrangements, receive updates more quickly, and work more efficiently, many churches are migrating their business solutions to the cloud. Many have already moved to the cloud and are experiencing the benefits of having software available wherever they are rather than being tied to a specific desktop. If you are using the desktop version of QuickBooks, we would recommend making the move to Intuit’s cloud-based solution, QuickBooks Online (QBO) one of Wisdom’s preferred accounting software solutions.
In recent years, the IRS has noted an increase in the cases of identity theft related to taxes. In an effort to help individuals protect their identity, the IRS has issued an opt-in program to receive a six-digit Identity Protection PIN to include with individual tax returns.
Tax season is upon us! If you have not already begun to receive documents in the mail for IRS forms, you likely will soon. With that, for clergy, comes both understanding your housing allowance and setting up your allowance for next year.
Or, do you need the confidence that a CPA looked at your church’s books?
The term “audit” has been used in church circles to refer to having an CPA look at the books, exercise their professional judgment, and give accounting support. In the world of CPAs, a traditional audit requires many regulations and procedures that we have found many churches and nonprofits do not benefit from. We at Wisdom have found another option: Financial Statement Preparation.
Late Sunday, December 27 President Trump signed the omnibus bill of $2.3 trillion passed by Congress just days before. Originally President Trump refused to sign the bill desiring more money to go to the American people; it appears that Congress is making attempts to pass additional legislation today (December 28, 2020) to meet the president’s demand on behalf of the American people.
Christmas time! A time of wonder, joy, and excitement. This time around Christmas is usually spent preparing for yummy feasts, exchanging thoughtful presents, and spending time with loved ones. But this year may look a little different; this year may feel like the wonder is lost, the joy has been taken, and the excitement is nowhere to be found. As the month of December continues, it almost feels like just another month to make it through. As we wrestle with how Christmas 2020 feels, we should stop and listen.
2020 has been a year for the record books. Thankfully, we have made it to the last few weeks of 2020. As we prepare for a new year, there are a few financial items churches should do now to begin 2021 on the best foot!
I do not know about you, but I am ready for a fresh start. Unforeseen and unexpected things have plagued this year, and we have seen the effects of all that has transpired throughout our communities. This new year deserves a new beginning.
Heading into the Thanksgiving Holiday, we are now 90% of the way through 2020. Phew, what a year it has been! This year has notably included an added day, a global pandemic, social unrest, social distancing and quarantine, a Presidential election and so much more. With all that has happened it is easy to be overwhelmed, feel defeated and see individuals as the enemy.
But the word of God reminds us that regardless of what we are going through, we are called to be people of thanksgiving.
What comes to mind when you read the phrase, Fringe Benefits? For most, they immediately think of perks received for different jobs. No matter what your initial thought is, most employees are happy to receive Fringe Benefits from their job. Within the tax code the IRS gives room for many fringe benefits that employers seeking to care for their employees can take advantage of.
Starting out for a lofty peak, hiking through strenuous terrain, and trekking for days is difficult, that is, if you try and hike by yourself. If along your journey to the top though you had the help of a guide, the unknown road before you becomes much easier to navigate. A guide has been there before, they know the way to safely get to the top, they know nuances particular to the trail you are on, and they won’t let you get very far off trail before correcting your direction.
Wisdom Over Wealth is excited to announce that Allison Michaud and Kaitlin DeWitt have been admitted as shareholders of the firm and will be joining Bill OConnell in managing the business.
Deciding if it is time to outsource your bookkeeping responsibilities can be complex. Your church may have an administrative staff member who helps with the bookkeeping, but the church could be better served by freeing them to focus on ministry tasks rather than bookkeeping. Your church may be a new church plant that finds yourselves overwhelmed with ministry needs and would be better served by having an outside church bookkeeper take that task from your already overcrowded plate. Or your church may have an outstanding church bookkeeper who serves the church well, passionately serves with their gifts, and are an invaluable member of the ministry team.
Every October, churches across the United States make a point of appreciating the pastors in their congregation, those that give of their lives to serve the church. These celebrations include cards from parishioners, and gifts of many kinds.
For the past 5 months church life has looked different. Services and in person ministry have been adjusted, budgets have been reevaluated, and laws affecting employment have become a topic of high interest. In April, Wisdom wrote about some of the items found within the CARES Act passed by both the House and Senate. In addition to the CARES Act, the public has recently seen much about the Paychex Protection Program, Families First Coronavirus Response Act (FFCRA), and the Presidential Memorandum written by President Trump. We have been getting questions regarding what effects the FFCRA and recent Presidential Memorandums will have on churches and want to address those items.
After all the changes we have experienced in 2020, the budget your church’s leadership laid out in anticipation for this year is likely not a true representative of the realities and the current needs found in both your church and community.
As this season of PPP loans continues, it feels like the updates will never end. The SBA just released their latest update on August 4th to their FAQs regarding the Paycheck Protection Program.
Fraud within a church shakes a congregation. The speculation of fraud can do just as much damage as actual fraud, causing people to turn against one another. Just as preventing fraud should be a priority for churches, protecting those who serve in the capacity of a church’s bookkeeper should also be a priority.