communication & accountability in the eyes of god, and also of man

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  • Communication & AccountabilityIn The Eyes of God, and also of Man

  • Church Communication and Church AccountabilityCommunicationNot How Much but HOW?CreativeInspiringChallenging To higher LevelsCelebratoryConsistentMinistry Related

  • AccountabilityAccuracy & TruthfulnessDisclosure of all important dataTell it like it is!Fiduciary ResponsibilityTrust, responsibilityActual or Perceived Church Communication and Church Accountability

  • This is a Manual of Procedures for Communication and Accountability Also covering Church Accounting, Church Payroll Taxes, Expense Allowances and Ministerial Compensation

  • Church AccountingReceivingCounting Tithes and OfferingsDepositingDisbursingRecordingAuditing

  • Managing Your Churches MoneyGods MoneyNot the ChurchsFiduciary ResponsibilityPolicies and Procedures are Mandatory!!Givers PerceptionsPublic PerceptionsIRS Record KeepingErrors and Omissions---THEFT

  • Money Management ControlsBudgetsSee Separate BookletsPolicy ManualsWritten Committees vs IndividualsDual CustodyRotation of Duties, Vacations, Separation, Training UshersReport Reconciliation's Overseeing or Audit Committee

  • Money Management Components Receiving ProceduresWritten In a ManualTrain Usher, Counting TeamsDual CustodyCheck Cashing- NO!Designated Giving-Be CautiousSecurityCounting CommitteeSee Separate BookletWritten ManualEnvelope VerificationError VerificationCounting Report, Pg 17Control TotalsSecurity

  • Money Management ComponentsDepositing ProceduresWritten ManualSeparation of DutiesSecurityBank ProceduresFlorida Baptist Credit UnionDisbursement ProceduresWritten ManualAuthorizationDocumentationControlsReconciliationSecurityPetty Cash

  • Money Management ComponentsRecording Church FinancesWritten ManualAccounting SystemManualComputerizedBudget ControlsAudit Trails and ProceduresReporting Church Finances--IndividualsChurch Financial Secretary BookletEnd of Year Giving ReportsIf Errors Present please notify ???IRSReconciliation

  • Money Management ComponentsChurch ReportsCongregational Financial StatementsIncome StatementBalance SheetsDesignated Fund AnalysisDisbursementsReceiptsSpecial Reports

    AuditsExternalExpensiveHelps Develop ProceduresInternalAudit CommitteeSee BookletCo-op With Sister Church?

  • Deductible GiftNondeductible GiftChurch MembersPastor & WifeThe Designated Gift

  • Other ConsiderationsUnrelated Business IncomeIRS 501c3Sunday School Classes with Separate Funds?Cash Money Management AccountsPolitical Action Committees? Real Estate Taxes?

  • Resource Material - The ChurchManaging The Churches MoneyVital SignsFlorida Baptist Convention CatalogChurch Ministry BudgetingSolving The Church Budget PuzzleCommunication & Accountability

  • Resource Materials- The ChurchFinancial Records For ChurchesAccounting ProceduresChurch Stewardship Ministry TeamValues of a Financial Audit and/or Internal Auditing for the Small ChurchBuilding for The Future

  • External ResourcesChurch Tax and Law ReportCall 800-222-1840 for a Sample Copy.Every Church and Assoc should subscribeChristian Ministry ResourcesPart of CTLRGeneral Business Books and Resources

  • The Church is a huge target for the criminal!

  • Church Payroll TaxesRequirementsProceduresCommon Errors

  • EMPLOYER RESPONSIBILITIESObtain Form W-4(Submit Copy to State) Obtain Form I-9File New Hire Report in Florida Withhold Income TaxesWithhold FICA and Medicare TaxesIssue Form W-2 by January 31

  • Kinds of Employee Compensation

    Current Compensation

    Taxable Fringe Benefits

    Nontaxable Fringe Benefits

    Deferred Compensation

  • 20 Factory Employee TestInstructionsTraining IntegrationPersonal ServiceHiring, Supervising, and Paying AssistantsContinuing RelationshipSet HoursFull-time WorkWork on PremisesSet Work OrderReports Pay by the Hour, Week, or MonthBusiness and Travel ExpensesTools and MaterialsInvestmentProfit or LossWork for More Than One Company at a TimeServing the PublicRight to FireRight to QuitCONTROL

  • Top Ten Mistakes1.Improperly classifying employees as self-employed (independent contractors)2.Failing to send a Form W-2 to each employee, minister and/or a Form 1099-Misc to certain nonemployees3.Failing to include taxable fringe benefits (such as nonaccountable expense reimbursements, social security supplements, and special occasion" gifts) in wages on Forms W-24.Including the ministers housing allowance in wages on Form W-25. Failing to offer church employees available nontaxable fringe benefits

    6. Failing to provide church employees with an accountable expense reimbursement plan7. Funding an accountable reimbursement plan from employees compensation8. Providing contribution receipts to members who donate their services to the church9. Providing contribution receipts for donations designated to other individuals without proper organizational control10. Failure by churches that operate, supervise, or control a private school to timely file an annual Certificate of Racial Nondiscrimination (Form 5578)

  • Expense AllowancesAccountable Reimbursement PlansTax ImplicationsHow To Do it Right

  • ADVANTAGES OF AN ACCOUNTABLE REIMBURSEMENT PLAN

    Avoids including the reimbursement in the taxable income of the employeeAvoids the possibility that the employee will be unable to deduct expenses because of the standard deductionAvoids the reduction for Schedule A miscellaneous expenses caused by the 2% of AGI floorAvoids the expense reduction caused by the Deason expense allocation ruleAvoids the statutory 50% reduction for meal and entertainment expenses

  • DISADVANTAGES OF AN ACCOUNTABLE REIMBURSEMENT PLANEmployees must keep detailed expense recordsThe reimbursement plan cannot be considered as a part of an employees compensation packageThe budgeted amount is not payable unless the expense amount is incurred and substantiated to the churchThe church designated administrator of the plan must have full authority to deny reimbursement for any claimed (but unsubstantiated) expense

  • ACCOUNTABLE REIMBURSEMENT PLAN REQUIREMENTSWritten Plansee page 32 in Managing Church Money BookletLimited to Deductible Business ExpensesSubstantiate to Employer Within 60 Days the Following Items:Date Expense IncurredPlace Expense IncurredAmount of Expense (may substitute standard allowances and per diems)Business Purpose of Expense

    Return to Employer any Excess Advance Within 120 Days

  • Ministerial CompensationCurrent Compensation

    Taxable Fringe Benefits

    Nontaxable Fringe Benefits

    Deferred Compensation

    Gifts

  • THE CREDENTIAL HOOPLicensed,Commissioned, orOrdained

    THE PERFORMANCE HOOPMinistration of Sacerdotal FunctionsConduct of Religious WorshipAdministration of Religious OrganizationsTeaching at Theological Seminaries

  • Ordained, Licensed MinistersAre ALWAYS treated as Self-Employed for Social Security purposes

    Church salary is NEVER subject to income tax withholding

    Are MOST LIKELY, employees for Federal withholding of income taxes

  • Special Tax Considerations

    Housing Allowance Exclusion - Sec 107Self-Employed Status for Social Security - Sec 1402(c)Possible Exemption from Social Security Coverage - Sec 1402(e)Exemption from Mandatory Income Tax Withholding - Sec 3401(a)(9)Eligibility for Voluntary Income Tax Withholding - Reg.. 1.3402(p)-1Potential Double Deduction of Mortgage Interest and Real Estate Taxes and as Housing Expenses for Housing Allowance - Sec 265(a)(6)

  • Ministers Tax FormsSchedule SE for Social Security TaxesSchedule A, not C for business expensesW-2 for Salary and not a 1099Estimated Tax payment forms 1040 ES, unless you have a voluntary withholding arrangement with the church

  • Gold Medal ResourcesDr. Clarence Hackett, DirectorBill Montgomery, Assistant DirectorFBC Stewardship Dept.1-800-226-8584 ext 3025Association Office and D.O.MFlorida Baptist Convention Area Stewardship Specialist

  • My Stewardship MinistryChristian Money Management SeminarsChurch Accounting ConsultingStewardship Sermons and RevivalsWeb pageBiblicalstewardship.com Cmm@biblicalstewardship.comBuilding for The Future Consultant

    *Cover page*Keep going back to Resource Slide as an outline*Lightly review each booklet. Major pointssee highlights in my booklets. Which are numbered. Use individual slides that are prepared for each booklet. Keep coming back to resource slides as outlines*Check with groupAccounting emphases? Record Keeping? Budgeting? IRS?*Outside influences are becoming super important*The Church is the last bastion of naivety **********

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