BGAV – Baptist General Association of Virginia DEDUCTION FOR UNREIMBURSED EMPLOYEE EXPENSES SUSPENDED
President Trump signed the “Tax Cuts and Jobs Act” into law on Dec. 22, 2017. One implication of the legislation impacts church employees related to their ministry-related expenses.
Church staff who have claimed deductions for unreimbursed employee expenses need to be aware that this deduction was suspended. This means they will lose a deduction that may or may not be valuable depending on how much they benefit from the increased standard deduction.
Churches that either do not reimburse their pastor for expenses incurred in their ministry or cap these expenses should note the loss of the ability of the pastor to deduct these items. In such cases, the church should review its expense reimbursement policy and consider implementing an accountable reimbursement policy that allows for nontaxed reimbursement of these expenses.
Any changes in expense reimbursement should be implemented as soon as possible so as to lessen the impact when filing the 2018 Federal income tax return.
If you have questions concerning this issue please contact Jeff Cranford, BGAV Compensation Planning Specialist via phone at (804) 921-3945 or by email to jeff.cranford@bgav.org.
Southern Baptist entity leaders applauded a federal appeals court decision March 15, 2019, upholding the constitutionality of the ministerial housing allowance.
A three-judge panel of the Seventh Circuit Court of Appeals in Chicago ruled unanimously the long-standing clergy allowance does not violate the First Amendment clause that prohibits government establishment of religion. The decision reversed a federal judge’s 2017 opinion that invalidated the allowance as a violation of the establishment clause. Read the whole article with additional information here.
Upcoming Events
- Church and Clergy Tax Seminar: for church staff and lay leaders who handle taxes and compensation
- Church Financial Administration Seminars: provide an opportunity for training for new and prospective church financial officers (e.g. treasurers) and financial staff. Those who are experienced financial leaders and staff will have opportunities to learn about the latest resources and approaches to church financial ministry.
- Planning Financial Support for Church Staff: help churches create and manage benefits as part of a comprehensive compensation plan for church employees
Church and Clergy Tax Seminars:
Church Financial Administration Seminars
| Date/Time | Event | |
|---|---|---|
 | April 25, 2019 9:30 AM - 12:00 PM | Church Financial Administration Seminar Virginia Baptist Resource Center, Henrico |
Planning Financial Support for Church Staff
| Date/Time | Event | |
|---|---|---|
| September 25, 2019 9:30 AM - 12:00 PM | Planning Financial Support for Church Staff Virginia Baptist Resource Center, Henrico |
![Jeff Cranford : [staff-title]](https://vbmb-wpengine.netdna-ssl.com/wp-content/uploads/2013/09/cranford-jeff.jpg)
Jeff CranfordClick on the following headings for information related to these vital areas of providing financial support for church staff to empower them for effective ministry.
Treasurer's Role
Treasurer's Role
The Church Treasurer’s Role is an excerpt from the Church Management Guidebook, a publication of the Support Ministries Team at the Baptist General Association of Virginia. Please Note: This publication is intended to provide a timely, accurate, and authoritative discussion of the position of Church Treasurer. It is not intended to be an exhaustive discussion of all items relating to the position of the church treasurer. It is also not intended as a substitute for legal, accounting, or other professional advice. If legal, tax or other expert assistance is required the services of a competent professional should be sought. Although we believe this document provides accurate information, there may be changes resulting from IRS or judicial interpretations of the Tax Code, new tax regulations, or technical corrections that occurred after the printing of this book that are not reflected in the text.
Church Staff Compensation Study and Reports
Church Staff Compensation Study and Reports
The 2018 Compensation Study is available for use by churches and church staff in compensation planning. The 2018 study was a joint project of state Baptist conventions, Lifeway Christian Resources and GuideStone Financial Resources.
Compensation and congregational data was collected anonymously from ministers and office/custodial personnel of Southern Baptist churches and church-type missions. Reports are based on compensation for over 12,000 respondents from all 42 state conventions. While this data is made available with respect for the autonomy of each local church, the information can help a church be objective in considering appropriate staff compensation. All amounts are annual amounts based on 2018 compensation. Cost of living adjustments should be made when using the data in subsequent years.
Insurance Services
Insurance Services
Compensation Planning
Compensation Planning
Retirement Services
Retirement Services
Salary Package Information
Salary Package Information
Tax Information
Tax Information
HealthCare Reform and Providing Medical Insurance for Church Employees
HealthCare Reform and Providing Medical Insurance for Church Employees
Beginning January 1, 2014, the Affordable Care Act (ACA) mandated new rules around how employers can assist employees with the cost of health care coverage through reimbursement vehicles such as employer payment plans, health reimbursement arrangements (HRAs) and Section 125 plans including premium-only cafeteria plans (POPs) and flexible spending accounts (FSAs).
Information on Healthcare Reform is available at http://www.guidestoneinsurance.org/HealthcareReform2.
Jeff Cranford, BGAV Compensation Planning Specialist, can provide information, consultations, and resources to help church staff and lay leaders understand and comply with the provisions of Healthcare Reform.