Tax Insights

A nonprofit may pay directly for an employee’s business travel without the value being taxable, provided the travel is for bona fide business purposes, the expenses are properly substantiated, and the arrangement meets the specific requirements of an accountable plan. If these rules are not followed, the value of the travel may be taxable to the employee.

But there’s a hidden trap that catches many ministers off guard: while the housing allowance is income tax-free, it is not self-employment tax-free.

Below is detailed information that a church can utilize to accurately determine the classification of its employees.

Identity theft is a major concern for Americans, and it poses significant risks to taxpayers.