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 31^st.

b.    Be paid via credit card on or before December 31^st.

c.    Be postmarked by the post office on or before December 31^st.

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.