FAQs: Frequently Asked Questions
1. How much is Per Capita in Newton Presbytery for 2010?
Total Per Capita per member is $29.00 broken down as follows: General Assembly $5.79, Synod $3.70 and Presbytery $19.51.
2. How much do I reimburse the pastor for vouchered miles driven?In 2010, the approved IRS standard mileage rate will be 50 cents per mile.
3. What kinds of loans and grants are available to my church?Loans and grants are available to all member churches from Presbytery, Synod, and General Assembly. The Presbytery must approve all applications first, so be sure to call the Treasurer for a timeline before proceeding with applications. We also have Synod/General Assembly loan and grant applications on disk at the office, and can send one to you by mail.
4. How long must I keep financial records?
Length of time depends on the type of record. See the Record Retention Guidelines.
5. Are ministers considered employees or self-employed?
A minister has dual status under the law. The IRS has one set of criteria, and the Social Security Administration has another. The IRS considers the minister an employee for income tax purposes, and the IRS is the agency that receives the quarterly 941 and annual W-2s from the employer. However, clergy are exempt from withholding, which means you do not withhold any federal or state income taxes unless you have a written request and agreement from the clergy to do so. Generally, they will prepay their federal income taxes by means of the quarterly estimated tax procedure.
The minister is considered self-employed for social security purposes; therefore, they will use the quarterly estimated tax procedure to report and prepay self-employment tax. You do not withhold social security and Medicare taxes from their income.
6. What is "effective salary"?
Effective salary is reported to The Board of Pensions for plan members of churches in order to calculate the dues for medical, pension and death/disability benefits they receive. For information on effective salary as well as dues information, service/salary change forms, retirement savings plan and tax guides, contact The Board of Pensions at www.pensions.org.
7. We have a new employee. Where do I get a W-4 (Employee's Withholding Allowance Certificate) and I-9 (Employment Eligibility Verification) for them to fill out?
For forms and publications, go to the IRS Website at www.irs.gov. Here you'll find a wealth of information for charitable organizations as well as forms and publications, including Circular E.
8. We have just received money from a special offering (or disaster fund, peacemaking, pentecost, etc.) and don't know where to send it.
All mission money received by Newton Presbytery churches should be sent to the Presbytery office along with a Mission Remittance Form. This would include unified and directed mission giving, special offerings, extra-commitment projects and the Johnsonburg Camp Capital Campaign.
9. We've just taken a collection for a current disaster……what do we do now?
This should also be sent with the Mission Remittance Form and mailed to the Presbytery. You may find account numbers and information for disaster relief projects set up by Presbyterian Disaster Assistance.
10. I'm on a Presbytery Committee and have some expenses to be vouchered. How do I go about getting reimbursed?
You must fill out an Expense Voucher, have the committee chair sign it, attach a receipt, and send it in to the Presbytery office.
11. What is required of our church as far as having our books audited?
The Book of Order in G-10.0401 states that minimum standards include "A full financial review of all books and records relating to finances once each year by a public accountant or public accounting firm or a committee of members versed in accounting procedures. Such auditors should not be related to the treasurer (or treasurers). Terminology in this section is meant to provide general guidance and is not intended to require or not require specific audit procedures or practices as understood within the professional accounting community."
12. What is the difference between an audit and a review?
A review made by a CPA "performs inquiry and analytical procedures to provide a reasonable basis for stating that he/she is not aware of any material modifications that should be made to the statements in order for them to be in conformity with generally accepted accounting principles." A review enables the CPA to provide the company and other financial statement users with limited assurance that material changes to the financial statements are not necessary for them to conform to generally accepted accounting principles.
An audit "performs a study and evaluation of internal accounting control as a basis for reliance thereon in determining the extent, nature, and timing of audit tests. Obtains corroborating evidential matter through inspection, observation, confirmation, and other necessary audit procedures to support an opinion on the financial statements." An audit allows the CPA to give the company and other financial statement users a high level of assurance that the financial statements are fairly presented.
13. Our church would like to computerize - do you have any suggestions?
Most financial software companies will be happy to send you a demo disk/CD for you to try. Many will let you download or see a demo from their website. Here are a few that I'm aware of:
Automated Church Systems 1-800-736-7425 or www.acstechnologies.com
Church Windows 1-800-533-5227 or www.churchwindows.com
Power Church Plus 1-800-486-1800 or www.powerchurch.com
Servant Keeper 1-800-773-7570 or www.servantpc.com
Membership Plus 1-800-644-6344 or www.memplushome.com
If you'd like to speak with some of our churches who have purchased software and see what they use, call me here at the Presbytery office.
