Christian Education Ministries Welcomes you to our Online Training

Payroll and Taxes Alisa Prince, Accounting Associate The Office of Central Services Associate Reformed Presbyterian Church

Employee or Independent Contractor? Employees Contractors Directed and Supervised Set Own Work and Schedule Ongoing Employment Set Own Hours for Work Works for One Employer Works for Other Clients Works Set Hours Works By The Job

Employee or Independent Contractor? Employees Contractors Can Be Dismissed Paid By Contract Reimbursed for Expenses Pays Expenses and Equipment Company Benefits Obtains Benefits Privately Employees receive a W-2 and Independent Contractors receive form 1099-MISC for work over $600 filed by January 31st and filed with form 1096 by February 28th.

Employee Forms and Procedures W-4 Exemptions I-9 Immigration www.uscis.gov/e-verify www.scnewhire.com

Clergy Tax Issues Weber v. Commissioner Dual Tax Status Income Tax Withholding Potential Double Deduction FICA Taxes

Accountable and Non-Accountable Expenses Accountable Non-Accountable Proof of Expense No Proof of Expense Not Taxable Taxable Non Accountable Allowances Box 1 of W-2 Housing Allowance Box 14 of W-2

Common Church Errors Withholding FICA and Medicare Taxes On Ministers Paying Tax Free Housing Allowances To Non-Ministers Not Including Employer Provided Housing As Wages Not Recording 403B Contributions Not Including Bonuses, Taxable Gifts, Ministerial Fees Not Including Paid Personal Expense As Income

Common Church Errors Continued . . . Not Including Additional Housing Expense As Income Designating Ministers As Self-Employed For Tax Purposes Not Filing Form 941 In A Timely Manner Not Issuing W-2 or 1099-MISC Forms Not Complying With Payroll Tax Deposit Requirements

Contact Information If you have any questions on the material presented or if you need the support of The Office of Central Services in any way please contact us. Roger N. Wiles J.D., Executive Director, rwiles@arpsynod.org, 864-232-8297 Cindy Scott, Office Administrator, cscott@arpsynod.org, 864-232-8297 #221 Leland Beaudrot, Assistant to the Director, leland@arpsynod.org, 864-232-8297 #227 Brian Such, CPA, Director of Finances, bsuch@arpsynod.org, 864-232-8297 #224 Alisa Prince, Accounting Associate, aprince@arpsynod.org, 864-232-8297 #223. Carolyn Heatherly, Human Resource Administrator, cyheatherly@arpsynod.org, 864-232-8297 #222 Susan Tanner, Editor ARP Magazine, stanner@arpsynod.org, 864-232-8297 #237 Missy Middleton, Assistant to the Editor, mmiddleton@arpsynod.org, 864-232-8297 #236