Year-end Checklist (2021)

Can you believe 2021 is almost over? In order to close out the year, there are some items we want to make sure we can wrap up during the holiday season for a smooth closing.

Housing Allowance Updates

Each year, clergy should be given the opportunity to update their housing allowance amounts for the following calendar year. Requests must be approved by the governing body (elders, trustees, etc.) or a representative before being paid and cannot be retroactive.

No one is required to update their housing amount, and housing can be updated anytime throughout the year, but to avoid confusion and the risk of errors, housing allowance requests should be submitted before the first payroll of the year. Editable forms are available for use below.

Housing Allowance Worksheet (Editable)
Housing Allowance Request Form (Editable)
IRS Publication 517 (Informational)

Collecting W9 Forms

The IRS requires a 1099 form to be sent to specific individuals or businesses you paid throughout the course of the year before January 31st.

Paid by cash or check.

In order to provide a 1099 to a vendor, they must submit a completed Form W9 to you (most businesses should already have one on file, but you’ll need to ask for it). This is similar to how a new employee completes a Form W4 before starting work.

For our clients, we’ll send you a list of eligible vendors from whom you need a Form W9. Please return these to us by January 6, 2022 if you’d like us to file your 1099 Forms.
Return Due Date: January 6, 2022

Form W9

Updating Addresses

Did your employees move during the year? We recommend sending a reminder to your employees to check the address on their most recent pay stub and update the address as needed to receive their W2 for tax purposes.

Most employees can update their own address in their employee portal. Please contact us if someone on your team does not have access.

For our payroll clients, W2’s will be available for download in the employee’s portal and a mailed copy will also be provided.
Due Date: January 5, 2022

Donor Records

Now is a great time to remind your donors (and potential donors) that the cut-off for charitable giving in 2021 is December 31, 2021. Online gifts should be submitted by 11:59 pm. Other gifts must be post-marked by December 31st to qualify as charitable contributions during this tax year.

While you’re sending this reminder – don’t forget to cast vision for why giving is important. After all, it is the most charitable time of year!

If we are managing your donor records, statements will be provided by email and/or mail by January 31st.

Employee Status and Pay Changes

Several churches will be impacted by legislative changes at the beginning of the year. Be sure to check your local laws for changes to minimum wage requirements, exempt salary requirements, or the addition of new taxes.

As the government focuses on protecting employees, they continue raising the requirements for employees to be exempt from overtime pay. In some instances, state requirements are higher than the federal requirements. If a conflict exists between the federal and state requirements, employers should always follow the law that favors the employee.

WA Cares Fund
WA Minimum Wage and Overtime Changes
CA Minimum Wage Change

For help on this, please feel free to reach out.

Similar Posts