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Showing posts from December, 2021

Top 10: Church Compensation Considerations

This is another posting in the MinistryCPA Top 10 series: Understanding what to offer a pastor as part of his compensation package can be a difficult task. There are a number of different factors to consider. Variables such as compensation, insurance, housing allowance, taxes, and retirement all play into compensation. We have compiled a list of factors that a church should consider when designing a compensation package for the pastor. Every church situation is unique, and each church should analyze what it can actually afford. 1. How does the church determine an appropriate compensation rate? Determining an appropriate compensation level can be a difficult task in a small ministry. There are a few factors that can be used to help determine a fair compensation for the pastor. The first factor that should be taken into consideration is the needs of the pastor. If the church wants a pastor to work full time, then it must consider what he needs to be paid to support himself and his fami

Good to Great

  The following questions and discussion items elicit strategic thinking by those responsible to lead a Christian ministry, especially as they employ strategic planning processes. Jim Collins and his research team identified characteristics of those organizations that transitioned from being “good” to becoming “great.”   Demonstrating Level 5 Leadership Level 5 leaders embody a paradoxical mix of personal humility and professional will. [They] are fanatically driven, infected with an incurable need to produce sustained results. They are resolved to do whatever it takes to make the [organization] great, no matter how big or hard the decisions” (page 39). Item one : What evidence can you offer from your experience at your Christian ministry that you possess or are developing this level of professional will?   Assembling the Right Team of People Before Determining Exactly What It Should Do “Good-to-great leaders began the transformation by first getting the right people on

2022 Standard Mileage Rates

The IRS has issued 2022 standard mileage rates. These rates begin on January 1, 2022, and apply to the use of a car, van, pickup or panel truck. 58.5 cents per mile for business miles driven (up from 56 cents in 2021). 18 cents per mile for medical purposes (up from 16 cents in 2021). 14 cents per mile driven in service of charitable organizations (no change from 2021). More information is available on the IRS's  website .

Top 10: Payroll Compliance Issues

This is another posting in the MinistryCPA Top 10 series:  Understanding payroll can be a difficult task in any business. Knowing how to onboard new employees, pay them, file tax documents, and deal with other benefits is a daunting task. We have created a list of some of the top payroll compliance issues that we see here at MinistryCPA. 1.       Employee vs Independent Contractor Understanding the difference between an employee and an independent contractor is essential to the payroll process. If a person is classified as an employee, then the business is responsible for employment taxes such as social security, Medicare, unemployment, and income tax withholding. If the person is classified as an independent contractor, the business is not responsible for any of these taxes.  There are three factors that help a business determine whether an individual is an employee or an independent contractor. These three factors are the degree of behavioral control, financial control, and t