Hopefully 2024 has been filled with many different memories and examples of God’s goodness! With December quickly approaching, there are a few financial items churches should do now to begin the New Year on the best foot!
1. Verify W2 information for this year to make sure employees receive accurate and timely forms at tax time.
a. Verify legal names, SSN and addresses for each employee.
b. Make sure all W2 information has been reported. This includes bonuses, personal use of company car, gifts to employees, reimbursed moving expenses, etc.
2. Make sure that all employee information is updated so that there isn’t a hitch with next years payrolls being run on time.
a. Have all employees fill out new W4 forms for the new year.
b. Update housing allowance designations for all clergy. Housing allowances should be updated and affirmed each year. Consider having clergy use a Housing Allowance Worksheet.
c. Verify or adjust salary/hourly compensation levels.
3. Check state minimum wage changes and other state tax laws beginning on January 1, 2025.
4. The IRS has removed Non-Employee Compensation from the 1099 MISC form. Non-Employee Compensation must be included on the form 1099 – NEC. Wisdom is prepared to process these forms for your church. Contact us for more info!
5. Prepare and approve your 2025 budget as soon as possible. Although there is much about the start of a new year that is unknown, it is important to begin with some sort of plan. Consider using a quarterly budget that can be adjusted as the reality of what the year will hold becomes known.
We are all looking forward to a fresh start in 2025. Make the transition seamless by preparing well for the end of year!
Contact Wisdom to learn how we can help your church start 2025 on the best foot!