Church Treasurer's Handbook

by Nuffer, Bruce

• ISBN13: 9780834120044
• ISBN10: 0834120046
• Format: Hardcover
• Copyright: 2002-12-01
• Publisher: Foundry Pub the

Summary

All you need to know about handling church finances - at your fingertips!Church treasurers are trusted with one of the most important jobs in the local church. Unfortunately, they are often left alone to sort out the numerous complicated questions of taxes, payroll, and reporting. New treasurers may not even know what's expected of them in the first place. The Church Treasurer's Handbook gives treasurers an overview of their duties, guidelines for completing them, and tips for making the job easier.The Church Treasurer's Handbook provides: An overview of basic accounting principles, in layman's terms An easy-to-understand explanation of tax regulations Options for monthly and annual financial reporting A general job description for the church treasurer Advice for handling payroll, housing allowances, and other compensation for the pastor and staff Tips on communicating with the church board, the pastor, and the financial committee Guidelines for handling money ethically A CD with forms necessary for record keeping, including tax forms, accounting ledgers, individual contribution records, budget worksheets, forms for counting the offering, and more You don't have to be a certified public accountant in order to be a good church treasurer. Just look to the Church Treasurer's Handbook for the answers to your questions.

Author Biography

Bruce Nuffer is one of the co-creators of the LifeStream product concept

Table of Contents

Introduction	p. 9
Responsibilities of the Church Treasurer	p. 11
Unique Relationship with Pastor and Other Church Staff	p. 11
Extent of the Treasurer's Responsibility	p. 12
Separation of Financial Responsibilities	p. 12
The Handling of Church Income	p. 13
Suggested Steps in Handling Expenditures	p. 17
Should You Computerize Your Church's Financial Records?	p. 18
Payroll, Employees, and Ministerial Compensation	p. 19
Who Is an Employee, and Who Is a Contractor?	p. 19
Employees	p. 19
Contractors, Employees, and Ministers	p. 22
Employees (Other than Clergy)	p. 23
Clergy	p. 23
What If We Do Not Withhold and Report?	p. 24
What If We Are Not Sure Which Employment Relationship Exists?	p. 25
10 Steps to Preparing for Payroll Tax Obligations	p. 25
Ministerial Compensation	p. 29
IRS Regulations for Business Expense Reimbursements	p. 30
The Cost of a Minister vs. the Cost of a Ministry	p. 31
Parsonage or Housing Allowance?	p. 33
Pro Parsonage and Con Housing Allowance	p. 33
Pro Housing Allowance and Con Parsonage	p. 34
Tax Implications	p. 35
Another Alternative	p. 36
OK. We've Decided on the Housing Allowance	p. 36
Conflict Over Compensation Issues	p. 40
Taxes	p. 42
Tax and Reporting Procedures for Congregations	p. 42
Classification of Employees	p. 43
How the Courts Have Ruled	p. 43
The Ministerial Employee	p. 44
The Lay Employee	p. 45
The Employer Identification Number	p. 45
What Is Taxable for Federal Income Tax Purposes?	p. 46
Income Tax Withholding	p. 47
Social Security/Medicare Tax Witholding	p. 47
Form W-4	p. 48
Deposit of Withheld Amounts	p. 48
Form 941	p. 49
Form W-2	p. 50
Form W-3	p. 52
Form W-5	p. 52
Form 1099-MISC	p. 52
Records	p. 53
Short Checklist for Tax Procedures	p. 53
Checklist for Filling Out Box 1 of Form W-2	p. 53
Minimizing Income Taxes for Church Employees	p. 54
Tax-Free Employee Benefits	p. 55
Business Transportation, Travel, and Related Expenses	p. 55
The Accountable Reimbursement Plan	p. 57
What the Church Could Do	p. 58
The Church-Owned Automobile	p. 59
Summary	p. 60
Budgeting, Reporting, and Financial Audits	p. 62
How Do You Determine the Annual Budget?	p. 62
The Chart of Annual Accounts	p. 64
Financial Reports to the Congregation	p. 66
Balance Sheet	p. 66
Statement of Revenue and Expense	p. 67
Statement of Cash Flows	p. 67
Management Reports	p. 67
Audits	p. 67
Why Have an Audit?	p. 67
External Audits	p. 68
Internal Audits	p. 68
Audit Procedures	p. 69
Works Cited	p. 75
Where to Go for More Information	p. 77
Financial Forms	p. 79
Index	p. 103
Table of Contents provided by Rittenhouse. All Rights Reserved.