Yes, this is a blog post about the IRS. So, understandably, I’m afraid I might lose you before we even begin. Please don’t check out too soon, though, because here’s the bottom line: The IRS actually has a new program designed to save you hassle and money.
Good, you’re still reading. Now let’s talk about why this program might be important to your ministry.
In the nonprofit world, especially in churches, it isn’t uncommon to find misclassification of workers—usually meaning an employee is mistakenly classified as an independent contractor. Why is it a problem? According to the IRS, “Employers who misclassify workers as independent contractors can end up with substantial tax bills. Additionally, they can face penalties for failing to pay employment taxes and for failing to file required tax forms.”
The new IRS program allows employers to resolve past worker classification mix-ups. By making a minimal payment to cover past payroll tax obligations, employers can come back into compliance rather than waiting for a dreaded and painful IRS audit.
If your ministry is eligible for this new program, you can obtain substantial relief from past-due federal payroll taxes. Once accepted into the program, you will pay an amount effectively equaling just over one percent of the wages paid to the reclassified workers for the past year. No interest or penalties are due, and you will not be audited on payroll taxes related to these workers for prior years.
(Need help determining if you have classification mix-ups? In a blog post I wrote addressing the issue last year, I included a resource from the IRS to help distinguish employees from independent contractors.)
There you have it. If you discover your ministry has employees who are classified as independent contractors, take advantage of this program to avoid hassle and expense and get into compliance. After all, how often does the IRS try to make things easier for you?
This is the second blog in our series of interviews with presenters at the upcoming 2011 Financial Forum for Ministries. This time I spoke with Dan Busby, president of the Evangelical Council for Financial Accountability (ECFA). His session is titled, “What Is Happening on Capital Hill Impacting Churches and Nonprofits?”
MBG: How will your presentation help attendees better serve their ministries?
Dan: With the latest information on church and nonprofit information from Capitol Hill, they will be well-armed to keep their organization abreast of issues that will be or may be coming down the pike.
What are three important takeaways attendees will learn during your presentation?
Dan: They’ll learn the current status on three important issues. First is threats and options related to the charitable contribution deduction. Second is the progress of the “Super Committee” with respect to deficit reduction and the possible impact for churches and nonprofits. And third is the work of the Commission on Accountability and Policy for Religious Organizations as they address a litany of tax policy issues given them by Senator Charles Grassley.
What do you think are the biggest challenges facing ministries today?
Dan: I see four major challenges. First is effectively telling their story. Too many ministries lead with facts and figures instead or leading with good stories about their ministry and supporting those stories with the facts and figures. Next is innovating with courage. Innovation is not just for for-profit organizations—it’s for nonprofits as well. An economic downturn is an ideal time for ministries to review all programs and processes and determine how to streamline, focus, and save dollars. A third challenge is to communicate appreciation. Ministries should have a mindset of continually expressing appreciation to staff and donors. Many staff members are feeling uncertain about their positions. Donors may be wondering about the viability of ministries they have been supporting. Express appreciation! A final challenge is to sweat the small stuff. Yes, the big issues are always important, but in this environment, it’s time to sweat the small stuff—being sure that the organization is running with precision from top to bottom.
What is the biggest challenge facing your ministry today?
The existence of evil and suffering are, without question, the most common reason people claim not to believe in God, or at least in a loving, just, and personal God. As one commentator says, “It is not merely a problem, it is the problem.” And John Stott reported, “The fact of suffering undoubtedly constitutes the single greatest challenge to the Christian faith…”
We sure see enough evil and suffering. Tornadoes, floods and fires in recent weeks alone have caused—and are still causing—untold grief and misery. And we all know someone, perhaps it’s even you, whose personal world is broken, shattered.
How we view God, especially in times of great trials and disappointment, is central to our faith and enables our endurance. It is our view of God that determines how we respond to suffering. Do we believe He is loving, just, faithful, merciful, caring, engaged, and in control? Most importantly, does He really work all things for good?
So, how do we walk worthy when our world is broken?
- It’s okay to cry out to the Lord. The psalmist says in Psalm 10:1 “Why, O Lord, do you stand far away? Why do you hide yourself in times of trouble?”
- We can still choose to trust Him. Even in the worst of suffering Job could say, “Though He slay me, yet I will hope in Him.” As her dear husband was losing his battle with cancer, my sister Ginny would whisper to him, “Remember, we are broken, God is not.”
- Choose to believe God; He works all things for good. Genesis 50:20 says, “As for you, you meant evil against me, but God meant it for good in order to bring about this present result, to preserve many people alive.”
My encouragement to you today: Whatever your circumstances, fix your eyes on Him. “Thou wilt keep him in perfect peace, whose mind is stayed (fixed) on thee.” (Isaiah 26:3 NASB)
Matt Weidler, an ECCUemployee, was awarded a $10,000 check for having a brilliant idea — accessing ATMs using a cell phone. Matt was announced the winner of the CO-OP THINK prize on May 17 at the annual THINK Conference in Anaheim, CA.
Read more about Matt’s winning idea by going to the CO-OP THINK website and clicking on 2011 Winner.
What do you think of Matt’s idea?
What does it mean to “hurt” another believer? I’m not talking about hurting someone’s feelings, or even causing physical pain.
If you look at Romans 14, specifically verse 15 (“For if because of food your brother is hurt, you are no longer walking according to love.”), you see a definition for “hurt” that means causing people to be spiritually weakened by your example. Tempting them to violate their conscience. Causing them to stumble.
Even among Bible-believing Jesus-followers, there are distinctions in personal convictions. And, clearly, not all convictions are absolute. Some seemingly important issues are “non-essential.” In fact, it is possible that we might actually be wrong on some things that seem really important to us. This passage is not talking about vital non-negotiables of the faith (such as the virgin birth, salvation by grace through faith, or clear commands of Scripture).
While Romans 14 speaks of close personal relationships, especially in the family and in the church, the passage also applies in a Christian workplace. So, how can we protect the convictions of fellow believers in our work environment?
- Recognize that sincere, faithful Christians will differ on some important issues. No matter how strongly you may feel, be careful not to judge. Be as fully convinced as you can based on clear scriptural principles and wise counsel. Don’t let your emotions run away, and allow room for differing opinions. (Again, this is in regard to non-essential issues.)
- Seek to be sensitive to the convictions and feelings of one another. Even be willing to give up your right to engage in some activities that you are fully convinced are acceptable before the Lord for the sake of fellow believers. Do not let Satan use such an issue as a wedge.
- Be especially careful to set aside your Christian liberty when there is a possibility that others may choose to engage in the behavior you model, and in the process violate their own conscience. In the Bible, this applied to eating meat offered to idols. Today, we could liken this to abstaining from alcohol around those whose convictions keep them from drinking.
- Avoid asking anyone to violate his conscience. Do not ask any employee to engage in a business activity that violates a sincerely held, biblically based conviction. If a faithful volunteer believes Christian rock isn’t, well, Christian, maybe you don’t ask him to help out with your next concert.
- Finally, recognize that there is a limit to this responsibility. We cannot modify our behavior for every conceivable situation, nor can we please everyone or avoid every potential offense.
Have you ever laid aside your Christian liberties to protect the conscience and convictions of a fellow believer? We’d love to hear about it.
