No, you clearly don't. Again, what is different about how Churches operate than any other non-profit? Or are you arguing that the idea of a tax-exempt non-profit should not exist at all?
http://www.freechurchaccounting.com/payrolltaxes.html If you are a nonprofit, you are required to withhold and pay federal payroll taxes. If you are a church and if you have any non-minister employees, you must withhold Income tax, Social Security tax, and Medicare tax (FICA) from their paychecks. Even if your church only has minister employees, you still may have to withhold income tax, if your minister has elected voluntary income tax withholds on his W-4. So, most churches will be required to withhold payroll taxes and remit them to the IRS.
Just, I think there should be tax exempt charitable organizations, but I don't think they should be allowed to stash money for years. If you want to be tax free, you need to show a zero balance at the end of the year, that money needs to go to the employees or back out into the community where it is meant to be. Thanks Max....but what about Employee payroll taxes? I didn't see that listed there. DD
Why do you care if they stash the money? They don't own the profits. It's like if you stashed away your friend's profits in a safe for which only your friend has the combination. Who cares? No matter what happens, you won't own that money.
So if the tax exempt organization has a building fire on January 1 of a new year you think they should just be screwed as they are not allowed to carry any balances? I am curious as to why you think they should not be allowed to store money. What about a homeless shelter. Should an organization not be allowed to save money to build a homeless shelter?
In the same vein, the diocese our church is in now requires the churches to have at least 1/2 the funds for a new building project saved up before they can even try to start building and/or get a loan, so in order to fund a new building project (again, completely paid for by the parishioners with no government assistance), we must "stash" money in a building fund account.
LOL this is such a funny conversation. Many churches would never even considering taking a loan to build a building as they interest would be too much for them to bear. They save for years to build a building on their own. Damn them!
God help them if they don't make enough in donations in a given year to build an entire building. Wouldn't want them to "stash" money.
Many of them are conscientiously or religiously opposed to going into debt in the first place. That's why they save for and cash-flow everything they do. What a horrible philosophy to live by....
I don't get why this is an issue? church takes in donations. It then can do what it likes with the money. It can: A) Buy additional services/materials/pay bills and that business receiving the service or business will be taxed and also the employees doing the labor will be taxed on their personal income B)Church can pay staff. This money is also taxed on personal income So, the money is not owned by any individual. It can only be spent (which will get taxed) or paid in salary (which will get taxed). How much more taxation is needed? Every situation where money is transferred is taxed except when it comes in the form of a 'donation'. You shouldn't have an issue as the donation is a stimulus in some reagard.
They pay all the same payroll taxes as any company. The clergy members are generally treated as self-employed even though they usually receive a W-2(Statutory employees are very similar). They must pay self employment tax on their income from the church in excess of their parsonage allowance. The tax situation on ministers and churches isn't going to change for one major reason. The system benefits the Clergy, and they are one of the biggest influences on a majority of voters in this country. Politicians do not want to be on their bad side.
What percent of churchs would turn a profit even if they could? ATTENDANCE # OF CHURCHES WEEKLY WORSHIPERS PERCENT Jul-99 177,000 * 9 million 59% 100-499 105,000 25 million 35% Nearly 95% of all churches are less than 500 Members. http://hirr.hartsem.edu/research/fastfacts/fast_facts.html#sizecong Everyone in the church balling out of control? Not according to this chart. http://www.payscale.com/research/US/Industry=Church/Salary Question: Would this be the Walmarting of religion? All the Ma and pa Churches getting kicked to the curb by larger churches? Maybe Church Fanchises? Rocket River Be good. . . for goodness sake.
