Announcements

 

Parking & Transportation Fringe Benefit – Potential Impact for Churches

As part of the Tax Cuts and Jobs Act of 2017, the Internal Revenue Service (IRS) introduced provisions that could result in non-profit organizations incurring unrelated business taxable income (UBTI) for expenses paid or incurred after December 31, 2017. There was little to no guidance from the IRS on this until Dec. 10, 2018 when they announced interim guidance on the topic. After the IRS announcement, the General Council on Finance Administration (GCFA) Legal Services group issued a brief white paper to provide answers to frequently asked questions, along with step-by-step instructions for churches to assess their own situation. 

Please follow this link to access the GCFA Legal Services page (“IRS Guidance on Parking Issues bullet point), and both of the aforementioned documents.

In many cases, the issue that could cause a church to incur UBTI is the number of parking spaces that are reserved for employees (even a single space reserved for the Pastor) in relation to the number of spaces made available to the general public (e.g., congregation members).  As the GCFA brief indicates, the IRS will allow employers to eliminate reserved parking spaces up until March 31, 2019, and have it treated as if it were done as of January 1, 2018. Please read the GCFA brief in its entirety to determine the appropriate course of action for your church.

If you have questions, contact Roger White, Conference Treasurer (724-776-2300 x239; Roger.White@wpaumc.org).


Workers Compensation

  • The 2019 Workers Compensation rate is 1.0% (.010)
  • 2019 Payments are due at the Conference Center by March 31st.
  • 2019 Workers Compensation Worksheet is available here. This is a fillable form and will automatically calculate your payment. You must print the form to include with your payment as it will not be saved on the website.

Mileage Rates 

2019 the rates are

  • 58.0 cents per mile for business miles
  • 20 cents per mile for medical or moving purposes
  • 14 cents per mile for services to charitable organizations.

2018 the rates are

  • 54.5 cents per mile for business miles
  • 18 cents per mile for medical or moving purposes
  • 14 cents per mile for services to charitable organizations.

Social Security Rates

The IRS has established 2019 withholding rates as follows:

  • Employee tax rate for Social Security - 6.2%
  • Employer tax rate for Social Security - 6.2%
  • The wage base limit for 2019 is $132,900
  • Employee tax rate for Medicare is - 1.45%
  • Employer tax rate for Medicare is - 1.45%
  • There is no wage base limit for Medicare

The IRS has established 2018 withholding rates as follows:

  • Employee tax rate for Social Security - 6.2%
  • Employer tax rate for Social Security - 6.2%
  • The wage base limit for 2018 is $128,400
  • Employee tax rate for Medicare is - 1.45%
  • Employer tax rate for Medicare is - 1.45%
  • There is no wage base limit for Medicare

 

As of January 2013, individuals with earned income of more than $200,000 ($250,000 for married couples filing jointly) pay an additional 0.9 percent in Medicare taxes. The tax rates shown above do not include the 0.9 percent.

Self-employed persons (clergy) are responsible for paying both the employee and employer portions of Social Security and Medicare taxes.