2. Bonuses & Love Offerings

Written By Kathy Holt

Bonuses and love offerings for pastors and staff are exciting to give during this season, but can cause a headache for the church bookkeeper. As a reminder: Per IRS rules, Bonuses & Love Offerings MUST be run through payroll.

To make these items accurate and easy to input, follow these setup instructions:

  • Add Love Offerings and Bonuses as Pay Items in Maintain Item Descriptions.

  • Add the appropriate Pay Item to each employee in Maintain List of Employees.

  • When the time comes to pay, include a dollar amount during payroll processing for the Love Offerings or Bonus. If these Pay Items are setup properly, PowerChurch will calculate the appropriate taxes to withhold and pay.

This newsletter contains information about churches and tax matters. This information is general in nature and does not consider your organization’s specific circumstances. This information should not be treated as an alternative to taxation advice from an appropriately qualified professional. If you have specific questions, please consult Stewardship Resources, LLC (a division of Summit Tax & Accounting, PLLC) at (217) 877-6766 for advice tailored to your need.

Kathy Holt

Kathy Holt, Partner, Accountant, Trainer

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3. New Form W-4 as of 2020
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1. Year-End Payroll