Accountable Reimbursement Plan

Discussion in 'Pastoral Ministries' started by TomVols, Jul 2, 2007.

  1. TomVols

    TomVols
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    Do you have an accountable reimbursement plan for your ministry expenses? If so I'd love to see a copy of what you use. I have helped draft one or two in the past but I can't find any of them in my files. And I'm just curious as to what some of you have in place.
     
  2. Gubsanchez

    Gubsanchez
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    Georgia SBC has info

    The Georgia Baptist Convention just put out some info on the A.R.P.


    Heres what they sent just last month. I have used this plan for 1 year and it's not only what the government prefers, but it has helped at tax time.

    (Heres what they sent and can also be found at www.churchfinancialservices.org)


    2007 STANDARD MILEAGE RATE REACHES RECORD HIGH
    WASHINGTON — The Internal Revenue Service released the standard mileage rates to use for
    2007 in computing the deductible costs of operating an automobile for business, charitable,
    medical or moving expense purposes. Beginning January 1, 2007, the standard mileage rates for
    the use of a car (including vans, pickups or panel trucks) will be:
    · 48.5 cents a mile for all business miles driven, up from 44.5 cents a mile in 2006;
    · 20 cents a mile when computing deductible medical or moving expenses, up from 18
    cents a mile in 2006; and
    · 14 cents a mile when giving services to a charitable organization.
    SAMPLE ACCOUNTABLE REIMBURSEMENT POLICY*
    In accordance with IRS regulations 1.162-17 and 1.274-5(e), the ________________ Baptist
    Church hereby establishes a reimbursement policy for all ministers and employees with the
    following terms and conditions:
    1. The church will reimburse only reasonable ministry-related business expenses incurred
    by a minister or employee. Subject to budget limitations, such expenses will include:
    Business use of automobile, up to the current IRS standard mileage rate;
    Business travel away from home: transportation, lodging and meals on overnight
    trips;
    Convention conference and workshop expenses;
    Educational expenses, if otherwise qualified as an itemized deduction and within
    IRS limits;
    Subscriptions, books, and tapes, if related to ministry or employment;
    Entertainment/hospitality expenses, if business connection requirement is met.
    Cell phone charges if cell phone is required by the church and not used for
    personal use by the minister or employee.
    2. The minister or employee will account for each allowable expense in writing at least
    every 60 days. Documentation will include the amount, date, place, business purpose and
    business relationship of each expense. A receipt will accompany the documentation.
    3. The minister or employee will return advances that exceed actual business expenses
    within 120 days.
    Under this accountable arrangement the church will not report reimbursed amounts as taxable
    income on the minister’s or employee’s Form W-2. The minister or employee should not report
    reimbursed amounts as income on Form 1040.
    If you would like additional information, please contact Church Financial Services of the Georgia Baptist Convention at (770) 936-5295, 1.800.746.4422,
    or www.churchfinancialservices.org. If you would like future Tax-Faxes emailed, please send a notice to [email protected]. This document is
    intended to provide churches, pastors, and staff with current and accurate information about the subjects covered. However, such information is
    not intended to be sufficient for dealing with a particular legal problem, and the authors and distributors do not warrant or represent its suitability
    for such purpose. The reader should not rely upon this document as a substitute for independent legal consultation or IRS instructions. *For
    additional information contact GuideStone Financial Resources of the SBC, 1.800.262.0511.
     

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