Navigating Church Finances: Keeping it Simple & IRS Compliant l Church Bookkeeping, Church Payroll, Minister Taxes

Ep 66 ~ Current QuickBooks Scam going around

The current scam going around for QuickBooks is discussed in today's episode.
I share the "red flags" to look for along with other helpful information.
QBES Care Support  888-702-5228
QB Support  800-446-4484
to report a scam security@intuit.com
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST Facebook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation
 

Ep 65 ~ Navigating the IRS Maze: Avoiding Financial Pitfalls - Key Tips for Churches

Welcome to The Church Finance & Minister Tax Podcast! Are you ready to safeguard your church's financial health? Join us as we uncover common pitfalls and share tips for financial compliance. From avoiding the commingling of funds to reporting taxable income, get ready to empower your church with the knowledge it needs. Stay tuned for valuable insights coming up in our final part of the 3-part series on Navigating the IRS.
Episode Quote
"You are successful when you do what you need to do today."— Craig Groeschel, "Think Ahead"
Episode Highlights
Common Pitfalls in Church Financial Compliance
Commingling Personal and Church Finances
Issue: Using church funds for personal expenses and reimbursing later blurs financial lines.
Consequences: Lack of transparency, serious tax implications.
Solution: Maintain separate personal and church accounts, revoke credit card privileges if misused, and ensure expenses are properly handled and reported.
Failure to Report Taxable Income
Issue: Ministers failing to report housing allowances and other taxable income accurately.
Consequences: Penalties and legal repercussions from the IRS.
Solution: Understand housing allowances are subject to Self-Employment Contributions Act (SECA) taxes, and consider voluntary Federal withholding by the church to aid compliance.
Importance of Professional Guidance
Issue: Unique complexities in church finances require specialized knowledge.
Solution: Seek professionals with expertise in nonprofit and church finances. Research and choose the right financial advisor, attend relevant training, and continuously educate church leaders on financial laws and best practices.
Special Announcement
New Course: Intro to Church Finances
Details: A comprehensive beginners course to help church leaders understand financial management and compliance.
Join the Waitlist: Be the first to know when it launches by signing up at www.introtochurchfinances.com.
Summary
Maintaining financial compliance in church operations requires consistency, transparency, and a commitment to understanding and fulfilling the legal and tax obligations for the church. By avoiding common pitfalls such as commingling funds and failing to report taxable income, and seeking professional guidance, church leaders can safeguard their organization's financial integrity, allowing staff to focus on their spiritual missions without the stress of financial mismanagement.
Thank you for joining us for the final episode of our Navigating the IRS series. Stay tuned for more episodes on how to empower your church with sound financial practices.
 
This podcast is brought to you by Hallmark Tax Solutions, LLC, specializing in church financial compliance and minister tax services. Learn more at Hallmark Tax Solutions, LLC.
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST Facebook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 64 ~ Know your value

In today's episode I share about a recent consultation session I had and what I shared about not allowing others to walk over you even when you work at a church!
Listen in and hear the passion :-)
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 63~ Building Strong Financial Foundations for your Church

Are you a church leader feeling overwhelmed by financial compliance? Stay tuned for part 2 of our series on Navigating the IRS maze: Tips for Church Financial Compliance. From maintaining accurate records to staying up-to-date with IRS filings, we've got you covered. Get ready to streamline your financial processes and gain peace of mind. I’m so happy to have you join me today!
As promised.... here is the IRS blurb you need to include in your contribution statements (or something similar)
Statement that goods or services, if any, that the organization provided in return for the contribution consisted entirely of intangible religious benefits, if that was the case.
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 62 ~ Navigating IRS Regulations: Tips for Church Financial Compliance

Feeling lost in a maze of IRS regulations?  Don't worry, you're not alone. Many church leaders and finance managers find themselves overwhelmed by the intricate web of rules and requirements. But fear not, because today, we're here to shed some light on the path to financial compliance. Today’s episode will kick off our 3 part series on Navigating the IRS Maze: Tips for Church Financial Compliance. I’m so happy to have you join me today!
 
xo
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 61 ~ Podcast Rebranding: What you can expect

I'm thrilled to share that the Bookkeeping with a Purpose podcast is evolving to better support our church office crew and is rebranding to a new name “The Church & Minister Tax Podcast”. Same location, all the back episodes, just a new name and expanded focus. Alongside finance and tax tips, we're diving into admin tricks and organization hacks to make your life easier. With over three decades of office experience under my belt, I'm here to offer the best advice on running your office smoothly and ethically.
 
xo
Michelle R Brown, EA
Join our FREE FaceBook Community
Intro To Church Finances course waitlist
 
 

Ep 60 ~ Decoding the DOL’s New Independent Contractor Rule

NOTE: The Department of Labor (DOL) and the Internal Revenue Service (IRS) use different criteria for determining whether a worker is an employee or independent contractor, and the criteria serve different purposes.
The DOLs criteria are primarily used for determining eligibility for wage and hourly protections under the Fair Labor Standards Act (FLSA), ( which we covered in Ep 57) while the IRS’s 20-factor control test is used for tax purposes.
On January 9th, 2024, the DOL unveiled its final rule, which fundamentally alters how businesses/organizations (incl. churches) determine whether a worker is an employee or an independent contractor. Effective March 11th, 2024, this rule replaces the 2021 independent contractor rule issued under former President Donald Trump, introducing a six-factor test to evaluate worker classification.
 But what exactly are these six factors, and how do they impact churches and workers alike? We break it down in this episode.
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 59 ~ Understanding Federal Taxes for Ministers and Churches

Segment 1: Tax Realities
Ministers Pay Taxes: Dispelling myths.
Legal Truth: Courts reject tax exemption claims.
Cautionary Note: Risks of tax evasion.
Segment 2: Ministerial Taxes 101
Tax Status: Ministers are self-employed.
Who's Qualified: Active licensed, ordained, or commissioned ministers.
Tax Responsibilities: Pay taxes through withholding or estimated payments.
Segment 3: Compliance & Penalties
Filing Rules: Ministers must file if earning over $400.
Accuracy Matters: Penalties for wrong tax reporting.
Get Help: Advising professional tax assistance.
Segment 4: Church Payroll Taxes
Get FEIN: Federal Employer Identification Number is essential.
How to Get FEIN: Fill Form SS-4.
EFTPS Registration: Needed for tax payments.
Segment 5: Payroll Tax Basics
Federal Income Tax
Medicare Tax
Social Security Tax
Unemployment Taxes for Churches.
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation
 

Ep 58 ~ How to Properly Structure a Donation Acknowledgement Letter

Tax season is upon us, and with it comes the need for proper documentation. Improper donation receipts can cause headaches for both donors and organizations. In this episode, we'll dive into the essential elements of a donation acknowledgment letter to ensure compliance with IRS standards.
Main Content:
Understanding IRS Requirements:
Explaining IRS guidelines for donors, including the need for timely written communication and recordkeeping.
Highlighting the responsibility of donors to obtain proper documentation for charitable contributions.
Church's Responsibilities:
Outlining the essential components of a donation acknowledgement letter, as specified by the IRS.
Emphasizing the importance of timely and accurate acknowledgement for contributions of $250 or more.
Crafting the Letter:
Providing a step-by-step guide for structuring a donation acknowledgement letter.
Discussing the format, content, and personalization techniques to enhance donor engagement.
Conclusion: As we wrap up, remember the significance of accurate recordkeeping and timely acknowledgement in fostering trust and compliance. By following these guidelines, you can ensure that your organization meets IRS standards and cultivates strong relationships with donors.
See links below that were referenced in this episode.
IRS Publication 1771
IRS Publication 526
xo,
Michelle
Next Steps:
Grab Your Freebies:
Six Steps to Doing Business God's Way    biz owners
A QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 
Join the BEST FaceBook group for church finances at Church Bookkeeping and Clergy Tax Facebook Group
 
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ www.bookkeepersInnerCircle.com
Need an extra hand with an immediate situation? Schedule a Consultation:
Schedule Consultation

Ep 57 ~ Unraveling the Mystery of Church Employees and Overtime Rules

Introduction:
Welcome to episode 57 of the Bookkeeping with a Purpose podcast!
Exploring the complexities of federal regulations, particularly regarding church employees and overtime rules.
I stumbled upon something fascinating recently, and you know me, I can’t keep cool discoveries to myself. So, buckle up for a journey into the world of church finance regulations!
Federal regulations often lack clarity, especially when it comes to topics like church employees and overtime rules.
Sparked by a question about a past episode I recorded on church employees and overtime rules, recent research uncovered new insights, prompting a deeper dive into the subject. Spoiler alert: it’s not as straightforward as it seems.
Segment 1: Quote of the Day
Drawing inspiration from Greek philosopher Aristotle: “We are what we repeatedly do. Excellence then, is not an act, but a habit.”
Segment 2: Understanding Fact Sheet #14A
Exploring Fact Sheet #14A from the Wage & Hour Division of the US Department of Labor.
Highlighting protections offered by the Fair Labor Standards Act (FLSA), including minimum wage, overtime regulations, record-keeping requirements, and child labor standards.
Segment 3: Coverage Criteria
Diving into two key ways employees are covered under the FLSA.
Enterprise Coverage: Employees of businesses generating at least $500,000 in annual sales revenue, with exceptions for non-profit organizations unless engaged in qualifying commercial activities.
Individual Coverage: Employees engaged in interstate commerce or closely-related processes essential to such production.
Segment 4: Application to Church Employees
Demonstrating how church employees may fall under FLSA protections, particularly through involvement in interstate commerce-related activities.
Debunking common misconceptions and emphasizing compliance with overtime regulations, minimum wage rules, record-keeping requirements, and child labor standards.
Segment 5: Volunteer Guidelines
Clarifying volunteer regulations outlined in Fact Sheet #14A:
Restrictions on volunteering in commercial activities.
Prohibitions against displacing paid employees with volunteers.
Limitations on paid employees volunteering for similar services performed in their job roles.
Episode Support Links
Fact Sheet #14A: Non-Profit Organizations and the Fair Labor Standards Act (FLSA)
xo,
Michelle
Next Steps:
Grab Your Freebies:
6 Step Process to Doing Business God's Way    biz owners
FREE QuickStart Guide to Church Finances   everybody
Looking for a group of like-minded people that want to keep Jesus at the center of everything they do?
 
Join the BEST FaceBook group for church finances at Church Bookkeeping & Clergy Tax FaceBook Group
 
If you’re a church staff member or volunteer looking to serve your local church with excellence, check out my membership group The Bookkeepers Inner Circle @ Bookkeepers Inner Circle
Need an extra hand with an immediate situation? Schedule a Consultation:
Consultation