Church Law & Tax Report

May/June 2019
Articles with a Member Access Only are available only to members.

Become a Member

Keep your church safe, legal, and financially sound.

When you become a member you get instant online access to help your church:

  • Reduce potential legal liability
  • Manage finances and risks
  • Comply with IRS requirements

Feature Article

Who Can Sign Church Documents?

Who Can Sign Church Documents? Member access only

A recent court case offers insights and warnings for giving signatory authority.

Articles

Recent Developments

Issues that affect ministers and churches, with Richard R. Hammar
New Jersey
Sexual Misconduct by Clergy, Lay Employees, and Volunteers

Pastor Sentenced to Prison for “Sexting” a 14-Year-Old Girl Member access only

Indiana
Sexual Misconduct by Clergy, Lay Employees, and Volunteers

Church Volunteer Given 35-Year Prison Sentence for Raping a Minor Member access only

Federal
Sexual Misconduct by Clergy, Lay Employees, and Volunteers

Church School Could be Liable for Failure to Comply with State Child Abuse Reporting Law Member access only

Illinois
Personal Injuries on Church Property or During Church Activities

Church Not Liable for Injuries Sustain by Teen at a Church Youth Event Member access only

Federal
Clergy - Discipline and Removal

Court Barred from Settling Sexual Harassment Claim Member access only

Tax Calendar

Important deadlines for churches and ministers

June 30, 2019

Now is a good time to review the 2019 housing or parsonage allowances designated for all ministers on staff. If an allowance designated for 2019 is clearly ...

June 15, 2019

  • Ministers (who have not elected voluntary withholding) and self-employed workers must file their second quarterly estimated federal tax payment for 2019 by this date. A similar rule applies in many states to payments of estimated state taxes. Nonminister employees of churches that filed a timely Form 8274 (waiving the church’s obligation to withhold and pay FICA taxes) are treated as self-employed for Social Security, and accordingly are subject to the estimated tax deadlines with respect to their self-employment (Social Security) taxes unless they ask their employing church to withhold an additional amount of income taxes from each paycheck that will be sufficient to cover self-employment taxes (use a new Form W-4 to make this request).

May 15, 2019

  • An annual information return (Form 990) for tax-exempt organizations is due by this date for 2018. Form 990 summarizes revenue, expenses, and services rendered. Organizations exempt from federal income tax under section 501(c)(3) of the Internal Revenue Code must report additional information on Schedule A. Churches, conventions and associations of churches, “integrated auxiliaries” of churches, and church-affiliated elementary and secondary schools are among the organizations that are exempt from this reporting requirement. Organizations not exempt from this reporting requirement must file the Form 990 if they normally have annual gross receipts of $25,000 or more.

May 10, 2019

Churches having nonminister employees (or one or more ministers who report their federal income taxes as employees and who have elected voluntary withholding) ...

Monthly requirements, May/June 2019

If your church or organization reported withheld taxes of $50,000 or less during the most recent lookback period (for 2019 the lookback period is July ...

Semiweekly requirements, May/June 2019

If your church or organization reported withheld taxes of more than $50,000 during the most recent lookback period (for 2019 the lookback period is July ...

ChurchSalary

ChurchSalary

Experience a whole new way to set compensation. Eliminate the guesswork – get access to detailed compensation reports in just minutes.

Managing the Legal Risks of Lay Counseling

Managing the Legal Risks of Lay Counseling Member access only

Develop specific policies and procedures that protect your church, lay caregivers, and those who receive care.
Unrelated Business Income — The General Rules

Unrelated Business Income — The General Rules Member access only

How unrelated business income, and the possible taxes owed from it, works for churches.