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 50 years or […]
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 information so that you can […]
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 and ICHRAs to other […]
Donated Stocks
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 on any appreciation. You will need […]
Begin to Prepare Now for 2019 Financial Statements
New in 2019 is an accounting rule change regarding how leases are recorded on your financial statements. This is especially relevant if you are required (ie: as a condition of a bank loan) to prepare your financial statements according to GAAP (generally accepted accounting principles). While these statements are typically prepared by an outside accounting […]
IRS Reform
President Trump recently signed the Taxpayer First Act into law. This bill will overhaul certain areas of the Internal Revenue Service, including the Office of Appeals. It is meant to provide new protections to taxpayers and also provide a much needed improvement to customer service. The IRS also has a year to submit a plan […]
Update on Housing Allowance
We have all been watching the outcome of the 2017 lawsuit in Wisconsin that challenged the constitutionality of the minister’s housing allowance. In March of this year, the Seventh Circuit reversed the lower courts decision, upholding the ability to pay a minister a housing allowance. While some believe that there will be more lawsuits in […]
Do You Have Form I-9 For Each Employee?
Under federal law employers, including tax-exempt organizations, are required to verify the identity and employment eligibility of all individuals they hire, and to document that information using the Employment Eligibility Verification Form I-9. In an effort to reduce illegal employment, I-9 audits increased significantly (nearly 400%) in 2018. Job site visits are often unannounced. Both […]
Changes To Your Credit Score Coming
A new credit scoring method is being rolled out this spring from FICO. It is called the UltaFICO score. Up until now the main factor in calculating your FICO score was your payment history (as well as the amount owed, length of credit history, new credit and the type of credit used). After the change, […]
Changes to Church Financial Statements
If your church is required to have outside prepared financial statements (ie: for a grant or a lending institution), you need to be aware of changes to the statements for fiscal years beginning after December 15, 2017. The results of these changes may result in additional time and cost needed this year for the completion […]