Is the church responsible for paying its employees?

Most churches are not knowingly paying their employees incorrectly, they just don’t know any better. However, to the IRS, the church is responsible for paying and filing correctly. From pastor’s housing allowance to properly classifying an employee versus an independent contractor, we come across churches everyday that need help in this area.

Are there any financial problems in the church?

You’ll see an email almost daily with another church falling victim to financial problems. All these horror stories simply prove the need for effective checks and balances for your finances. The internal controls you put in place early will serve long into the life of your church. Some things to think about.

How much money can a church make without a 1099?

Secondly, we find in many cases that in an effort to save money, time, whatever… churches will choose to say that paid persons are Independent Contractors and therefore subject to a 1099-MISC form if paid more than $600 for the year. The only problem is that a majority of the time, that person does not qualify for a 1099.

Can a church keep all of its money in one account?

Often, it can create more confusion to track money this way versus keeping all the money in one account, and the separation kept within the accounting software or ledger. For most churches, designated funds should be kept to a minimum.

Can you split income between church and non-profit?

A question from the inbox: “Pastor John, when it comes to giving ten percent of my income to a church — my tithe — can I split the money and give, say, five percent to my church and five percent to a non-profit Christian ministry?” What would you say about splitting the tithe?

Is the local church the seedbed for all other ministries?

The local church is the seedbed for all other ministries. The church is the place where the participants in those ministries find their nourishment and the biblical expression of their corporate worship.

Most churches are not knowingly paying their employees incorrectly, they just don’t know any better. However, to the IRS, the church is responsible for paying and filing correctly. From pastor’s housing allowance to properly classifying an employee versus an independent contractor, we come across churches everyday that need help in this area.

Do you have to give 10% of your tithe to another church?

We do not believe, though, that a believer is legalistically required to give 10% or any other set amount (see Christian Tithing ). The Bible instructs believers in Christ to give generously, to give cheerfully, and to give regularly. There is no biblical formula for how to split a tithe between a church and another Christian organization.