YEAR
END CHURCH TASKS
It’s the second week of December, and there’s not much
longer until Christmas (good news) and the end of the year (some good, some
not-so-good news).
It may seem like 2022 is a year we’d like just to end and
forget about, and while I can appreciate that, for those of us involved in the
financial-side of things, even a little bit, there is some work that needs to
be completed before the end of the year. Don’t panic, though. I’m going to
prepare a list of items to consider. You may have already taken care of some of
them. Congratulations! If not, there’s still time. You can also contact me if
you have any questions or need any help (susanranous@unyumc.org).
1.
Housing allowances and exclusions. Check with any clergy
you have on staff or that may be starting at the beginning of the year. Do they
have housing exclusions in place for 2022? If not, let them know that the
benefits of housing exclusions can only be taken advantage of after the
housing exclusion is approved. Has Staff-Pastor-Parish-Relations, Finance, and
the pastor reviewed any Housing Allowances in place? Are they correct?
2.
Tax Withholding. Remind your employees that they can change
their withholding or allowances for 2022 by completing the new 2022 W-4 form.
While you aren’t required to withhold federal or state income taxes from
clergy, clergy can elect withholding. Check with them before the end of the
year. If no new form is submitted, then withholding will continue as it was in
place at the end of 2021.
3.
Giving Statements. Send out giving statements to all of your
identified givers. I know you have to do this again in January for tax
purposes, but it’s a nice reminder to folks before the year is up and while
they may be feeling more generous, to catch up any commitments or pledges they
made. It’s also an opportunity to say “thank you” for their generosity during
the year and ask if they’d consider (a) catching up their giving and (b) making
an extra gift toward the ministries of the church. Tell them what their giving
has been able to accomplish so far!
4.
If
your church gives gifts to its employees, the Internal Revenue Service states
that all gifts of this type, unless they are so small as for it to be impractical
to compute the value, are taxable benefits and should be added to the employee’s
W-2 as taxable income, and have taxes withheld.
5.
In
order for a giver’s gift to be counted toward 2021, the gift must either:
a.
Be
received in the church on or before December 31st.
b.
Be
paid via credit card on or before December 31st.
c.
Be
postmarked by the post office on or before December 31st.
Simply back dating a check
or advising the church to give them credit in 2021 is not correct.
The
new year will bring another list of tasks, which I will cover in a future blog.
Don’t get discouraged! The tasks aren’t insurmountable,
and I am available to answer questions or guide you, if the need arises.
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