B R A D ' s     ON L I N E R     M E M O- - -


         TO:  Interested Onliners                                                                                       FROM:      Brad Pendable - CFO                                                                                                                                                                        
   
         RE: 
Staffers (Not Employees per se ) at new Small Ministries                 ORIGINATED:  February 2008                 


   Please notice that we have used the term "Staffers" and not "Employees" due to such factors as:

 

    01 -  Bee Tees  for SmallMins have more important Ministry Finance/Accounting responsibilities to concentrate on than the overall administration of "Employee" matters which normally includes such things as:   

                a>  Calculating and withholding of various types of Federal and/or State payroll taxes 
                b>  Record keeping of same and 
                c>   Remitting said withheld taxes  and 
                d>  Filing the required periodic tax returns as you report such data to governmental units, etc.

    02 - Usually the initial person compensated at most SmallMins is the Pastor who is not the usual "Employee" anyway ---- or they are technically "Self-employed"  Clergy.  As discussed, when you Click Here ,  there are some Clergy Tax matters that must be cared for at least annually.  Perhaps the content when you  Click Here  will also be of help to you.

    03 - The next group of services needed by the SmallMins can be provided via Part-Timers.   All "Staffers" usually work from their home (it seldom initially has an office per se)  and are either Volunteers or the SmallMins' needs are out-sourced to the applicable Provider.   This Provider preferably operates via a Business Name (DBA - Doing Business As) so that it does not have to annually provide them with a form 1099, etc.

    04 - Due to the administrative responsibilities stated above, retain such "Staffers" as long as possible before you hire an "Employee" and comply with the payroll tax requirements.

        Within context of these various types of "Staffers",  and the weekly  eFINFAX  accounting system,  the emphasis is to retain "Staffers"  who receive "Draft" payments ..... which basically means that they are retained on a weekly basis and at the first of a month their checks are written for all of the weeks of that month and dated and distributed accordingly.   These "Drafts", which convert to weekly checks at the appropriate date,  flow right into this weekly accounting system.  The recipient of these "Drafts",  according to the "Draft's" date,  of course,  makes weekly deposit of same.

          Some Clergy "Staffers" ask that a certain amount be withhold for their personal tax purposes ..... or, like an "Employee", they do not see certain amounts of their money.  This is placed into a holding (liability) account and given to the Clergy "Staffer" upon their request so they have money (probably quarterly) to meet their required Self Employed tax status requirements.  Some Clergy "Staffers" ask that the check which clears out this holding account balance be made payable to the applicable taxing authorities, etc.
 


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UPDATED LAST:   

      Fresno, California
               Please contact CFO Brad Pendable by Email at   Brad@rpfin.org  

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