The following information is provided for those involved with Church Finances.
If you have any questions about the information on this page, please contact the Presbytery office at 610.391.9020 or firstname.lastname@example.org
Per Capita information and rate.
Attention Pastors, Church Treasurers, and Chairs of Personnel Committees
The Rev. Douglas Portz, our Board of Pensions Regional Church Consultant, will be presenting an overview of recent changes to the Benefits Plan on
- May 2, 2017 from 1:00 p.m.-2:30 p.m. at The Presbyterian Parish of Bangor-Roseto, 332 Kennedy Drive, Bangor, PA;
- or May 3, 2017 from 10:00 a.m.-11:15 a.m. at The First Presbyterian Church, 3231 W. Tilghman Street, Allentown, PA.
Time will be spent giving an overview what benefits are staying the same and which are changing. We will discuss questions regarding:
- How small churches (or a church of any size) can use the Menu-options for their situation;
- How to fill out Employer Agreements (even for one employee);
- Completing the Annual Enrollment;
- How to use Benefits Connect to monitor your Benefits;
- How to use online forms and update salary information;
- How to grandfather employees into the Plan;
- as well as, how to add new full-time and part-time employees.
If you are interested in how these changes will affect your church, the budget, and your staff benefits please be sure to come and learn how the Board of Pensions is serving you. Please RSVP your attendance to the Presbytery office (610-391-9020 or email email@example.com). Thank you.
The Board of Pensions traditional benefits package for members is 36.5% of effective salary (Medical 24.5%; Pension 11%; Death and Disability 1%); If the effective salary is lower than the Medical participation minimum of $44,000., then the medical portion would be based on the Board of Pensions minimum effective salary.
Churches need to log on to Benefits Connect to enter and make changes to the pastor’s benefits package. Click the logo below to go to Benefits Connect.
- Guidance Regarding Church Members Securing Supplies for a Church-Authorized Program
- Legal Resource Manual for PC(USA) Middle Governing Bodies and Churches
- PC(USA) Financial Review Guide
- PC(USA) Financial Review Checklist
- Treasurer’s Manual
- Extra Giving Opportuinities
- Presbyterian Foundation – Investments & Endowments
- Scholarships, Grants, Loans, and Awards – Synod of the Trinity
- The Hubbard Press – Source for all giving materials such as: Offering Envelopes, Pledge Record Forms, and Automatic Debit Services for Pledge and Gift Giving. See Appendix for Electronic Funds Transfer Program.
TAX NEWS AND PAYROLL PROCEDURE UPDATES
The Clergy Tax Journal is an email newsletter created exclusively for clergy and churches that features breaking tax news, tax tips and services that affect your ministry. Below is some excerpts for the latest edition that you may find helpful.
Clergy Tax Law Update:
The Internal Revenue Service recently announced cost-of-living adjustments for pension plans and other retirement-related items for the tax year 2015. Most clergy will be able to increase the amount of maximum contributions into their church pension. Find out how much you can contribute.
Church Payroll Procedures – New Hire Checklist
Before an employee can begin work, the church must have certain documents on file to prove that the worker is indeed eligible to work in the United States. Find out which documents your church needs on file for every worker.
HR Hot Topic: Our employees often don’t turn their timesheets in on time. If an employee doesn’t submit his sheet on time, can we delay processing his paycheck until the next pay period? Find out the answer.Clergy Financial Resources 11214 86th Avenue N. Maple Grove, MN 55369 firstname.lastname@example.org clergytaxnet.com
Recent IRS Tax-Exemption Changes DO NOT Apply to Churches
The following directive was received on May 10, 2013 from April Davenport, PC(USA) Associate General Counsel, with regard to IRS Form 990. Please be guided accordingly. Information on IRS Form 990-T is detailed below if you need to refer to it.
Dave Boltz, Treasurer
May 13, 2013
We have received reports that some churches have received a notice from the Internal Revenue Service (“IRS”) stating that they are required to file IRS Form 990, Return of Organization Exempt From Income Tax. The Group Ruling held by the Presbyterian Church (U.S.A.) which provides 501(c)(3), tax-exempt status to the group, also exempts Presbyterian Church (U.S.A.) congregations, presbyteries, synods, and the General Assembly from filing Form 990. If your mid council or a church in your mid council has received a letter from the IRS asserting that Form 990 is due, please contact staff listed below from the Office of Legal and Risk Management Services of the Presbyterian Mission Agency immediately for assistance. Please do not ignore these letters from the IRS. Please also note that exemption from the requirement to file Form 990 does not extend to Form 990-T which relates to unrelated business income.
April L. Davenport, Associate General Counsel
Rebecca L. Rayner, Senior Paralegal
Recent IRS Tax-Exemption Changes DO NOT Apply to Churches
July 2010 – The nation’s media has been highlighting changes in IRS policy regarding tax-exempt organizations. Please not that churches do not have to apply to the IRS to maintain their tax-exempt status. For more information, see the brief synopsis from the IRS below or on the IRS website.
The Pension Protection Act of 2006 , made two important changes affecting tax-exempt organizations, effective the beginning of 2007. First, it mandates that most tax-exempt organizations, other than churches and church-related organizations, must file an annual return or submit an electronic notice, with the IRS. The Form 990-N, was created for small tax-exempt organizations that had not previously had a filing requirement. Second, the law also requires that any tax-exempt organization that fails to file for three consecutive years automatically loses its federal tax-exempt status. The IRS conducted an extensive outreach effort about this new legal requirement but, even so, many organizations have not filed returns on time. This one-time limited relief program helps small organizations preserve their status.