Box 12 is to be used to show codes and amounts of benefits or contributions for clergy. Ultimately, the minister must make this decision. Net Reportable Compensation on Quarterly 941 . The participant may make before-tax and/or after-tax contributions through payroll deductions. This distinguishes them from independent contractors which, according to SBA guidance are issued Forms 1099- How apportionments are calculated for a local church (2021) How Due by Feb. 28 (see below for more information on filing forms online). Local churches, similar to the conference, have many important administrative responsibilities in caring for the life, property, mission and witness of the congregation. I am an ordained clergy member of the United Methodist Church. Clergy default to $0 unless optional withholding is set up with the church. I am employed part-time and received a W2 with my income indicated in box 1. Moving Expenses: IRS Updated Documentation. For details on furnishing W-2s in this format, see chapter 11 in my Church & Clergy Tax Guide. The benefits provided by the Louisiana Annual Conference to clergy, clergy family members and lay employees are designed to help them live healthy and balanced lives; to enable them to be financially secure throughout time; and to provide needed resources for them in times of crisis. Download the information sheet regarding the Treatment of the Clergy Health Insurance Allowance on a pastors W-2 form. A-1 This is the net cash salary that is to be included on the W-2 form. Marilyn served two 12-year terms on the South Dakota, then Dakotas, Conference Board of Pensions, along with other roles in the Dakotas Annual Conference. Most IRS publications and forms can be downloaded from the IRS Web site at www.irs.gov, or ordered by Local churches, similar to the conference, have many important administrative responsibilities in caring for the life, property, mission and witness of the congregation. This covenant is to be marked by respect, honesty and integrity in all interactions with our colleagues. Annual Audit Report. Church/Pastor Login. It is the Disciplinary obligation of every United Methodist church to provide housing for its clergy. Note that we did not include the tax-free amount of $1,500 (accountable reimbursements) It would not be reported anywhere on the W-2. UMC Group Tax Exemption Application. It is doubtful many people will come because you do all kinds of helpful, friendly Read More See the IRS site to determine the proper treatment. Memorandum: Spousal Travel Expenses. (The church reports $35,000 as salary on the pastor's Form W-2, box 1.) (It is not true of all denominations.) Under Section 107 of the Internal Revenue Code, clergy can exclude a portion of their income from income tax if it is spend on housing expense, provided the church has designated a portion of the income as "Housing Allowance" in advance of it being paid to the clergy person. Are clergy employees or self-employed? Active clergy in the Virginia Conference who are participants in the Virginia United Methodist Pension Plan had group term life 2019 W-2 Special Considerations All individuals serving as clergy regardless of part-time or full-time status and regardless of if they are ordained, commissioned or licensed clergy should be receiving a W-2 for their services. This webinar will offer practical skills for Pastors and Church leaders to help other followers of Jesus make year-end gifts. Example: A church pays its pastor annual compensation of $45,000, of which $10,000 is designated as a housing allowance. Marilyn Perry shares clergy tax tips. Through The Advance, United Methodist annual conferences, districts, local churches, and organizations, as well as individuals and families, may choose to support mission programs or mission personnel with their financial gifts. Under Section 107 of the Internal Revenue Code, clergy can exclude a portion of their income from income tax if it is spend on housing expense, provided the church has designated a portion of the income as "Housing Allowance" in advance of it being paid to the clergy person. Deadline to employees: Churches have until Jan. 31, to provide a Form W-2 to their pastor(s) and lay employee(s). Permission to use the Cross and Flame must be obtained from the GCFA. United Methodist Board of Discipleship Perry, CPA, is the spouse of retired United Methodist Pastor Stephen Perry, who served for 33 years in the Dakotas Conference. by Jo Ann McNaught, CPA June 17, 2005. The Internal Revenue Service (IRS) has issued the 2021 standard mileage rates. Designation of Beneficiary Form. Wisconsin Conference of the United Methodist Church. Whether youre new to the Church, or 30 years into your career or ministry, finances play a significant role in how you live today and in retirement. is not included as income in Box 1 on Form W-2 but it may be reported in box 14. Do Not include the pastors Housing Resolution in ox 1 and ox 16. Federal taxes withheld from paycheck. For services in the exercise of the ministry, members of the clergy receive a Form W-2 but do not have social security or Medicare taxes withheld. Minister Audit Technique Guide. I do not have a housing allowance as part of my income. Click here to view instructions for adding this account to your iPhone or iPad (for experienced users - leave domain blank, use m.google.com as the server name, use entire address as username). W-2 form clergy example. They must pay social security and Medicare by filing Form 1040 (Schedule SE), Self-Employment Tax. The Advance is an official program of The United Methodist Church for voluntary, designated, second-mile giving. The United Methodist Church is a connectional church, and every pastor is a member of the Annual Conference rather than a local church. Email: [email protected]; Website: infoserv.umc.org. Beginning on January 1, 2021, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 56 cents per mile for business miles driven. W-2 Deadlines. Form W-3: W-3 Reporting Requirements. Beginning on January 1, 2021, the standard mileage rates for the use of a car, van, pickup or panel truck will be: 56 cents per mile for business miles driven. 2021 Annual Conference Ezra Report Login Find a church Clergy Directory Districts Church Portal SupportLinc Staff Email. In addition to the parsonage, the pastor requests that some of his/her income be designated for Bishop L. Jonathan Holston will remain as resident bishop of the South Carolina Annual Conference of The United Methodist Church through the current quadrennium, which has been extended at least through late 2022 due to the COVID-19 pandemic. Below are some helpful resources for local churches as they prepare W-2 information. 2. The income indicated in box 1 does not reflect this housing exclusion. Further, while this total Furnishings Allowance amount is paid directly to the pastor, any amount of the total that is not expended for furnishings the pastor has responsibility for declaring on the 1040 tax form as additional income. Your pastor, your annual conference treasurer, and people in your congregation and community. I-9 Form. Bishop's 2021 Bible Challenge Bishop Lewis has shared the 2021 Bible Challenge to read the Bible straight through from Genesis to Revelation. Furnishings Allowance does not appear on the W-2 form received from the church. Sample Clergy W-2 Form Financial Informational Resources . Instructions . This box should be empty on a clergy W-2. For income tax purposes, Rev. The pastors vacation year runs on the conference year of July 1-June 30. She will report on her 1040 as income $53,000 ($52,500 net salary plus the $500 of unused utility allowance). For more detailed tax information, the IRS has assistance programs and tax information products for churches and religious organizations, as noted in the back of this publication. I am an ordained clergy member of the United Methodist Church. Handling Church Finances. This box should be empty on a clergy W-2. A licensed, commissioned, or ordained minister is generally the common law employee of the church, denomination, sect, or organization that employs him or her to provide ministerial services. If you are clergy by tax law definition and not retired, an amount must be entered on this line. The church and pastor do not have to report the $10,000 housing allowance as income for federal income tax purposes. Collect the following information: Your staff and administrative board chair can help you with this: Holston Conference of The United Methodist Church. 5,907.25 . The Illinois Great Rivers Conference does not offer tax advice. Online Filing Instructions . Our Clergy Covenant We have a sacred calling as United Methodist clergy. Determine who you have paid a W-2 between January 1, 2019 and March 31, 2020. Permission to use the Cross and Flame must be obtained from the GCFA. For income tax purposes, Rev. 2021 CPP Disability and Death Benefits schedule. Caring for the life and wholeness of our clergy and their families. The Missouri Annual Conference 3601 Amron Court Columbia, MO 65202 573-441-1770 view in Google The Cross and Flame is a registered trademark, and its use is supervised by the General Council on Finance and Administration (GCFA) of The United Methodist Church. Reasonable travel and related expenses for attending meetings (e.g., annual conferences, United Methodist meetings, etc. We hope you find these resources useful as you plan your own local church and ministry calendars. Click here to watch Bishop Swanson's latest webisode and catch up on previous webisodes. If the church does not report the amount in box 14, it should report it independently to the pastor because this amount must be included in self-employment (Social Security) earnings (along with the fair rental value of the parsonage). Local Church Administration. [Clergy W-2 Example] Tax Reporting Requirements (PDF) Information about the reporting requirements of local churches. Welcome to the Planning Calendar for the South Carolina Conference of The United Methodist Church. Permission to use the Cross and Flame must be obtained from the GCFA. We currently offer more than 45 services to help provide support solutions for United Methodist-affiliated organizations. Members of the Clergy. Note: If your employees give their consent, you can furnish Forms W-2 to your employees electronically. She has operated her own accounting practice for the last 37 years and now resid United Methodist Center 5900 S. 2nd Street Springfield, IL 62711 More. Federal taxes withheld from paycheck. Should you receive more than you can justify, the excess should be considered taxable. We want to remind you that the due date for distributing 2020 W-2s & 1099-MISCs to your recipients is a postmark date of February 1, 2021 . The income indicated in box 1 does not reflect this housing exclusion. Email: [email protected]; Website: infoserv.umc.org. She will report on her 1040 as income $53,000 ($52,500 net salary plus the $500 of unused utility allowance). I am employed part-time and received a W2 with my income indicated in box 1. Clergy City Taxes. This is a publication of the East Ohio Conference of the United Methodist Church Commission on Pastoral Care & Counseling provided as a gift of support to pastors, families and lay leadership. Local churches are required to issue an IRS Form W-2 for clergy appointed to their church and not a Form 1099-MISC. 217 South Rankin Road, Alcoa, TN, 37701 P.O. 417 Earnings for Clergy. annual Form W-2, the policy in the Central Texas Annual Conference is that the moving expense payments are issued from the Conference office rather than the local church. 16 cents per mile driven for medical or moving purposes. Form . This box should be empty on a clergy W-2. Form W-2: Example of Form W-2 for Clergy. Learn more about our ten hubs for mission and ministry across the state of Indiana. full-time service in the United Methodist Church or its antecedents. This is the third edition of this resource and we wish to thank and acknowledge all those who contributed The 1099 MISC will include the total paid on behalf of pastors for whom the Records Retention. Wespath. Clergy Email Addresses: Click to view instructions If you haven't received your log-in information, please request it by emailing [email protected]. Website Login. Clergy W-2 Form Information (PDF) A document which gives general information on completing Form W-2 for clergy. Of The United Methodist Church Tax Reporting Requirements Clergy Compensation: A. Clergy have dual tax status: employees for tax reporting purposes (W-2) self-employed for Social Security tax purposes B. Average United Methodist Church Pastor yearly pay in the United States is approximately $54,415, which is 32% above the national average. Therefore, this is to inform you that the Annual Conference will issue a 1099 MISC rather than a W-2. 2021 Lectionary Quick View. Ministry begins at the Local Church where disciples are nurtured to lead. United Methodist clergy that are ordained, commissioned, licensed as a minister of a local church or appointed to an extension ministry are ministers of the gospel and are eligible for the Housing Allowance. Salary information comes from 3 data points collected directly from employees, users, and past and present job advertisements on Indeed in the past 36 months. If you cant find the form you are looking for here, you might wa Her actual utility costs during the year were $7,000. And this is the single most unique aspect of United Methodist clergy taxes. InfoServ, the information service for the church, provides current information about United Methodist resources, programs, and staff services. Worship Planning Resources. substantiated reimbursement payments as income on any Form W-2 If the clergy makes personal contributes of 1% or more to the United Methodist Personal Investment Plan (UMPIP) they will earn a 1% CRSP DC matching contribution. Medicare is not withheld. The 2021 Minimum Salary reflects a 0% increase over 2020. Only ordained, commissioned or licensed clergy qualify as clergy for tax purposes. Medicare is not withheld. This form can be downloaded to your computer and saved. The actual expenses of operating his home are $10,000 per year. Online Health/Dental/Life Insurance Payment Stub. Clergy default to $0 unless optional withholding is set up with the church. (See the IRS Form W-2 instructions for a complete list of codes.) Best Practices for Handling Church Offering. Clergy W-2 Handing Procedures . In North Carolina, IRS audited several hundred United Methodist minister's tax returns that reported their salary income and professional expenses spent to earn that income on Schedule C. Legal counsel of the United Methodist denomination required Methodist churches to provide Form 1099 to their ministers, rather than a Form W-2. (Box 12 Code E on W-2) 19,500 Net Reportable Compensation - Annual (Box 1 and 16 on W-2) 23,629. 2021 UMPIP Contributions Form. Housing Resolutions. United Methodist clergy that are ordained, commissioned, licensed as a minister of a local church or appointed to an extension ministry are ministers of the gospel and are eligible for the Housing Allowance. Extension Ministry. Carlton excludes $31,000 from gross income ($24,000 fair rental value of the house plus $7,000 from the allowance for utility costs). Our view is that salary of United Methodist clergy should be included in Payroll Costs, as such clergy are treated as employees for income tax purposes and are issued a Form W-2 to report their compensation. Housing Resolutions. You may file a paper return with an attachment stating that you received an exempted housing allowance as a retired clergy Rev. It is the Disciplinary obligation of every United Methodist church to provide housing for its clergy. Local Transportation Expenses. First, be sure to add cents to all amounts. This box should be empty on a clergy W-2. 2. 2021 Annual Conference Videos Available. 2. Full-year printable 1-page format, with colors. If your pastors contribution to UMPIP was designated as ROTH (taxable now) (Fund 45/46 in the Dakotas), then that amount should appear in IRS Form W-2 Box 12 with Code BB. In IRS Form W-2 Box 13, the box labeled retirement plan should be checked. Email Login. Box 2, the local church is not requi red to do any federal income tax withholding for clergy. However, some clergy may wish to request voluntary withholding by filing a Form W-4 with the church. Through voluntary income tax withholding, clergy may avoid the need to pay quarterly estimated taxes. Box 3, 4, 5 & 6 are left blank for clergy. purposes. Directions for W-2 and W-3's according to the IRS. 1. This approach to health coverage gives participants choice, flexibility, and control over how they pay for health care while helping the church facilitate the best health coverage for clergy and lay workers. However, I do have a designated housing exclusion for tax purposes. The Internal Revenue Service (IRS) has issued the 2021 standard mileage rates. Homepage. Each year, a memorial service is held during Annual Conference to remember the life and ministry of clergy and spouses of clergy who have served the United Methodist Church in West Ohio. In a gesture of honor, the family members are gifted a prayer continue reading You are both! Topic No. However, if a pastor is a participant in some other (non-qualified) plan, amounts may need to be reported here. Reflections: Enjoying Every Day. We urge each local church treasurer to consult a qualified tax advisor for specific information on payroll reporting issues. From time to time, new documents are added and existing documents are revised or updated. The 2021 Minimum Salary reflects a 0% increase over 2020. Service lived in a church parsonage furnished by her church, and: Therefore, the _____ United Methodist Church, _____, (Church Name) (City & State) hereby establishes an Accountable Reimbursement Policy (ARP) pursuant to IRS regulations upon the following terms and conditions: 1. Housing Resolution Form. It is doubtful many people will come because you do all kinds of helpful, friendly Read More The worship services and other videos rooted in the theme Perseverance can viewed on the West Ohio Conference YouTube page. GCFA Tax Packet. Clergy Salary. QuikLINK Lead with Your Strengths YPMC Retreat, RECHARGE Retreat, Filing Your Pastors W-2 and much more It is doubtful that many people will begin to show up in your church simply because your church is open on Sunday mornings. recent survey of United Methodist Church (UMC) clergy in North Carolina (NC), and from public church records. Pastoral Literature . The answer to that question is yes." However, I do have a designated housing exclusion for tax purposes. The clergy person named above shall have the rent-free use of the home located at the location above for the year 2021 and for every year thereafter so long as s/he is Pastor of this United Methodist Church unless otherwise provided. Fulltime pastors shall be enrolled in the Clergy Retirement Security Program (CRSP). The pastor owns his own home and the fair rental value of his home is $10,000 per year. The United Methodist Personal Investment Plan (UMPIP) UMPIP is a defined contribution retirement savings plan for clergy and lay employees of The United Methodist Church. Form W-2 Reminders For Clergy Box 1 & 16 Wages (includes the health allowance). Letter to GCFA from IRS re: Form 941. The pastor owns her own home and the fair rental value of her home is $10,000 per year. UM LifeOptions Plan Highlights. Keystone Credit Union . Less than fulltime pastors shall be automatically enrolled in the United Methodist Personal Investment Plan (UMPIP) with the option to waive the benefit upon submission of the official Waiver form. Starting on January 1, 2021, the standard mileage rates for the use of a car, van, pickup, or panel truck will be: 56 cents per mile driven for business use, down 1.5 cents from the 2020 rate. Connectional Giving. full-time service in the United Methodist Church or its antecedents. Connecting to our neighbors near and far to transform the world. The moving expense will increase the plan compensation which will result in additional cost for the comprehensive protection and clergy retirement security plans. EY Financial Planning. The Rural Church: Pastoral and Empirical Accounts . Deadline to government: Don't forget to send the federal and state governments their copy with the appropriate transmittal form. Total cash paid to pastor should be reduced by tax-deferred items: including housing resolution, HSA, FSA, dependent Care, dental, vision and Western Pennsylvania Annual Conference Finance Office Housing Resources . InfoServ, the information service for the church, provides current information about United Methodist resources, programs, and staff services. Ministerial Resources . This policy shall apply to all clergy and lay staff persons of this United Methodist Church. At the end of the year the moving cost paid by the local church will need to be included in Box 1 of W-2 form. 3. The General Board of Pension and Health Benefits of The United Methodist Church, Incorporated in Illinois, a general agency of The United Methodist Church ("Wespath") is a not-for-profit corporation and is exempt from U.S. federal income taxes under Section 501(c)(3) of the United HealthFlex Exchange is a group health plan designed for United Methodist clergy and affiliated lay employees and their families. For churches utilizing online banking, after the form is saved, email completed form to [email protected]. Her actual utility costs during the year were $7,000. Employee Conduct Policy. Together we share in a covenant relationship in a community of clergy (active and retired Elders, Deacons, Associate Members, Provisional Members, Local Pastors). Solidarity Wednesdays with Rev. The pastors vacation year runs on the conference year of July 1-June 30.