A Church Treasurer’s Most Common Challenges Clyde Harris, CPB April 11th, 2018

Introductions Rev. Kristiane Black Trinity United Church Cobourg, Ontario Providing Technical Support

Introductions Clyde Harris, CPB Member of Ebenezer United Church Treasurer – 24 years Toronto Southeast Presbytery Treasurer – 15 years Alwyn Enterprises (Bookkeeping for Churches) Owner – 16 years Institute of Professional Bookkeepers of Canada

Agenda Introductions Common Areas of Challenges Your Turn Canada Revenue Agency ADP – Payroll System United Church of Canada Local Pastoral Charge Resources Your Turn

Introductions Participants Church Treasurer Less than one year One to Ten years More than Ten years Accountants (CPA, CA, CGA, CMA) Clergy

Canada Revenue Agency Authorized Official Treasurer / Delegate Annual Charity Information Return (T3010) Donation Receipts for Income Tax Purposes Mail to Church Address To Treasurer No Names

Canada Revenue Agency Annual Charity Information Return Known as the T3010 Must use the correct form for filing period Must File on Time Review the Webinar from March 14, 2018 Erik Mathiesen – presenter https://united-in-learning.com Webinars Recorded

Canada Revenue Agency GST/HST Rebates GST Rebate available to all PSB (RC4034) HST Rebate for the HST Provinces Must file application for rebate Six month periods based on fiscal year January to June – July to December Up to four years back Direct deposit within ten business days

Canada Revenue Agency Charitable Donations DO NOT LOAN YOUR REGISTRATION NUMBER No requirement to issue receipt No required filing date If receipting donations Format is clearly defined in regulations Year end donations before December 31st Postmarked by December 31st Received in first week of new year

Canada Revenue Agency Payroll Most handled through ADP More on this later T4, T4A, T5 most common forms T4 issued for employment income T4A for other forms of income T5 for interest paid out

Canada Revenue Agency Clergy Residence Deduction Not necessarily the same as Housing Allowance No longer an issue with Compensation Program Complete Clergy Residence Deduction (T1223) Pastoral Charge completes Parts A and B Certification on second page Clergy completes Part C Complete annually – not necessary to file

Canada Revenue Agency Clergy Residence Deduction To claim reduction of income tax at source Request To Reduce Tax Deductions at Source (T1213) Completed by Clergy Required annually CRA will send a letter of response Adjust your calculations with ADP Do not change deductions until approved

Canada Revenue Agency Employee or Self-Employed If deemed employee then CPP and EI If not deducted payer is responsible If deemed self-employed no CPP or EI Intent of Contract of Service (employment) Contract for Service (Business arrangement) If in Doubt review publication RC4110

Canada Revenue Agency CHAMP – Charities Directorate On-line connections – current Set up MyBA for your Pastoral Charge Set up Direct Deposit to receive payments File G/HST Rebate on-line In your bank in 10 days On-line connections – November 2018 Complete and file T3010 Working on more

Your Questions Finished Canada Revenue Agency Take five minutes to answer 2 or 3 questions from the Chat Box.

ADP Canada Payroll Should have a basic understanding of payroll Salary/Wages Allowances Taxable Benefits Deductions Government – Income tax, CPP, EI United Church – Pensions, Benefits Employee – Pensions, LTD, Optional Benefits

ADP Canada Payroll All clergy must be paid through ADP Why not all staff? Additional cost of $1.14 per pay $15.97 to $31.93 including annual cost Reports at time of each run On-line at no additional cost Three important reports per period

ADP Canada Payroll Reports Pay Period Year End Daily Input Report Financial Report Pay Statements Year End A copy of all reports for the files

Your Questions Finished ADP Canada Take five minutes to answer 2 or 3 questions from the Chat Box.

United Church of Canada General Council Annual Statistical Report Summary of All Receipts Summary of All Disbursements Should balance to the Financial Reports Copy of Annual Report Conference/Presbytery Information Report may include Finances

United Church of Canada Local Pastoral Charge (Congregation) Regular Reporting Monthly/Quarterly Statement of Financial Position (Balance Sheet) Statement of Operations (Income Statement) Statement of Cash Flows List of Cheques Written List of accounts to be paid Annual Report First three plus Notes to the Statements

United Church of Canada Local Pastoral Charge (Congregation) Budget for New Year Best Estimates for Receipts Best Estimates of Expenditures Comparative to prior years Anticipated increases New Ministries/Projects Capital vs Operating Expenses Setting Targets for Restricted Funds

United Church of Canada Local Pastoral Charge (Congregation) Procedures List Duties Weekly, Monthly, Quarterly, Semi-Annually, Annually Be detailed Use as a check list to be sure it’s complete Pass along to your replacement Update as Necessary

Your Questions Finished United Church of Canada Take five minutes to answer 2 or 3 questions from the Chat Box.

Resources United Church of Canada (www.united-church.ca) Financial Handbook for Congregations Trustees Handbook Minimum Salary and Allowances for Clergy Websites: General Council and Related (i.e. united-in-learning.com) Conferences (www.mnwo.ca) Presbyteries

Resources Canada Revenue Agency (www.canada.ca) Newsletters Forms/Updates On-Line Options Representative Accounting and Legal Newsletters Canadian Council of Christian Charities Mentors – church treasurers (former)

Your Turn Question Time Questions from the Chat Room

Thank you and Contacts Thank You for being a part of this evening Hope you have gained new knowledge Special Thanks to Rev. Kristiane Black Technical skills in getting things to work Contact: Clyde Harris CPB clyde@alwynenterprises.ca