Church Treasurers Manual

CONTENTS
Introduction
1 Responsibilities Of The Church Treasurer
Separation Of Financial Responsibilities
Guidelines For Handling Church Offerings
Acknowledging And Reporting Charitable Gifts
Quid Pro Quo Disclosure Requirements
Suggested Steps In Handling Expenditures
Should You Computerize Your Church’s
Financial Records?
2 Payroll, Employees, And Ministerial Compensation
Who Is An Employee, And Who Is A Contractor?
Employees
Contractors, Employees, And Ministers
Employees (Other Than Clergy)
Clergy
What If We Do Not Withhold And Report?
What If We Are Not Sure Which Employment Relationship
Exists?
10 Steps To Preparing For Payroll Tax Obligations
Ministerial Compensation
IRS Regulations For Business Expense Reimbursements
The Cost Of A Minister Vs. The Cost Of A Ministry
Parsonage Or Housing Allowance?
Pro Parsonage And Con Housing Allowance
Pro Housing Allowance And Con Parsonage
Tax Implications
Another Alternative
OK. We’ve Decided On The Housing Allowance
Conflict Over Compensation Issues
3 Taxes
Tax And Reporting Procedures For Congregations
Classification Of Employees
How The Courts Have Ruled
The Ministerial Employee
The Lay Employee
The Employer Identification Number
What Is Taxable For Federal Income Tax Purposes?
Income Tax Withholding
Social Security/Medicare Tax Witholding
Form W-4
Deposit Of Withheld Amounts
Form 941
Form W-2
Form W-3
Form W-5
Form 1099-MISC
Records
Short Checklist For Tax Procedures
Checklist For Filling Out Box 1 Of Form W-2
Minimizing Income Taxes For Church Employees
Tax-Free Employee Benefits
Business Transportation, Travel, And Related Expenses
The Accountable Reimbursement Plan
What The Church Could Do
The Church-Owned Automobile
Summary
4 Budgeting, Reporting, And Financial Audits
How Do You Determine The Annual Budget?
The Chart Of Annual Accounts
Financial Reports To The Congregation
Balance Sheet
Statement Of Revenue And Expense
Statement Of Cash Flows
Other Financial Reports
Audits
Why Have An Audit?
External Audits
Internal Audits
Audit Procedures
Works Cited
Appendix 1 Where To Go For More Information
Appendix 2 Financial Forms

Additional Info
Most of the time, members who accept the position of church treasurer have little or no background in accounting, especially in smaller churches; and even those with accounting experience may have trouble knowing what’s expected of them when they begin their duties.

The Church Treasurer’s Manual is a practical tool that provides treasurers everything they need to know about handling church finances. From an overview of duties to helpful guidelines for completing tasks, new and veteran treasurers alike will learn practical tips and time-saving suggestions that will help them carry out their responsibilities in an effective and efficient manner.

Resources include:
an easy-to-understand overview of basic accounting principles
an extensive explanation of tax regulations
options for monthly and annual financial reporting
a general job description for the church treasurer
record keeping form for taxes, accounting ledgers, individual contribution records, budget worksheets, the offering, and more
advice for handling payroll, housing allowances, and other compensations for the pastor and staff
tips on communicating with the church board, the pastor, and the financial committee
ethical guidelines for handling money