Greetings from the Financial Administrator's Desk!
Friends,
IRS Provides Updated Withholding Guidance for 2013
IR-2013-1, Jan. 3, 2013
WASHINGTON — The Internal Revenue Service today released updated income-tax withholding tables for 2013 reflecting this week’s changes by Congress.
The updated tables, issued today after President Obama signed the changes into law, show the new rates in effect for 2013 and supersede the tables issued on December 31, 2012. The newly revised version of Notice 1036 contains the percentage method income-tax withholding tables and related information that employers need to implement these changes.
In addition, employers should also begin withholding Social Security tax at the rate of 6.2 percent of wages paid following the expiration of the temporary two-percentage-point payroll tax cut in effect for 2011 and 2012. The payroll tax rates were not affected by this week’s legislation.
New mileage rates from the IRS. Beginning on January 1, 2013, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:
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Mileage Rate Changes (cents)
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Purpose
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Rates 2012
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Rates 2013
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Business
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55.5
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56.5
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Medical/Moving
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23.5
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24.0
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Charitable
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14.0
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14.0
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The 2013 Per Capita
The Presbytery approved the 2013 budget and per capita on November 10, 2012. The total per capita for 2013 will be $32 per active member. Of this total, $21.30 is used by our Presbytery with the remainder sent, as required, to the Synod and General Assembly
Presbytery Expense Voucher
Presbytery Committees may need to pay a vendor to be reimbursed for an expense. Please click here for the 2013 Presbytery Expense Voucher and instructions.
Now might be a good time for your pastor to review his/her housing allowance designated for 2013. If they find that their allowance was too low because they incurred more housing expenses than anticipated, it can be increased for the remainder of the year as long as the Session amends the amount and it is recorded in the minutes. Ministers do not pay federal income tax on the amount of their compensation designated in advance by their church as a “housing allowance”. This does not result in any additional compensation being paid to a minister. Rather, a minister's salary can be decreased by the amount of the increase in the housing allowance. An amended housing allowance is only effective from the date of the amendment. And remember that housing allowance is only nontaxable if it is used to pay housing expenses and doesn’t exceed the fair rental value of the minister’s home.
Discover the new Pensions.org with e-learning made easy. The Board of Pensions (PCUSA) has updated their website recently,www.pensions.org. A highlight of the new site is BenefitsConnect, an online tool that provides active Plan members secure access to their personal benefits information. Not only can members submit changes to their contact information and dependent status, but they can use online calculators to estimate their pension and death benefits. To help you understand all that Pensions.org and BenefitsConnect have to offer, the Board of Pensions has created an e-learning tutorial. This educational presentation will guide you through the many new features and tools that make these sites the definitive source for Benefits Plan and Board program information.
Grace and peace,
Lizabeth Hutchinson
