The importance of donor letters

Just how important are those end of year donor letters and statements that charitable organizations send? Very important, according to the IRS. In a recent case, courts disallowed a charitable contribution deduction for a donor because of a defective donor letter sent...

Are Love Offerings Taxable to the Recipient?

At times, churches can receive funds from members of their congregations specifically for a pastor, musician, or another individual to honor and bless them for their service to the church. These funds are often referred to as “love offerings,” and these amounts must...

Fun with FICA tax!

One confusing area of church payroll is how to handle Social Security & Medicare taxes for Ordained/Licensed ministers.  Ordained/Licensed ministers are considered to be self-employed when it comes to their income from the church.  This means that churches are not...

Employee Classification

One of the things that have been on the IRS’ radar in recent years is employee mis-classification.   Companies are tempted to classify workers as contract labor rather than employees because it saves them money on taxes.  Others just simply don’t know the difference...
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