A Church Treasurers Most Common Challenges Clyde Harris

A Church Treasurer’s Most Common Challenges Clyde Harris, CPB April 11 th, 2018

Introductions Rev. Kristiane Black Trinity United Church Cobourg, Providing Ontario Technical Support

Introductions Clyde Harris, CPB Member of Ebenezer United Church Treasurer Toronto Southeast Presbytery Treasurer Alwyn – 15 years Enterprises Owner – 24 years (Bookkeeping for Churches) – 16 years Institute of Professional Bookkeepers of Canada

Agenda Introductions Common Areas of Challenges Canada Revenue Agency ADP – Payroll System United Church of Canada Local Pastoral Charge Resources Your Turn

Introductions Participants Church Treasurer Less than one year One to Ten years More than Ten years Accountants Clergy (CPA, CGA, CMA)

Canada Revenue Agency Authorized Treasurer Annual Official / Delegate Charity Information Return (T 3010) Donation Mail Receipts for Income Tax Purposes to Church Address To Treasurer No Names

Canada Revenue Agency Annual Charity Information Return Known as the T 3010 Must use the correct form for filing period Must File on Time Review the Webinar from March 14, 2018 Erik Mathiesen – presenter https: //united-in-learning. com Webinars Recorded

Canada Revenue Agency GST/HST Rebates GST Rebate available to all PSB (RC 4034) HST Rebate for the HST Provinces Must Six file application for rebate month periods based on fiscal year January Up to June – July to December to four years back Direct deposit within ten business days

Canada Revenue Agency Charitable Donations DO NOT LOAN YOUR REGISTRATION NUMBER No requirement to issue receipt No required filing date If receipting donations Format is clearly defined in regulations Year end donations before December 31 st Postmarked Received by December 31 st in first week of new year

Canada Revenue Agency Payroll Most handled through ADP More T 4, on this later T 4 A, T 5 most common forms T 4 issued for employment income T 4 A T 5 for other forms of income for interest paid out

Canada Revenue Agency Clergy Residence Deduction Not necessarily the same as Housing Allowance No longer an issue with Compensation Program Complete Pastoral Clergy Residence Deduction (T 1223) Charge completes Parts A and B Certification Clergy on second page completes Part C Complete annually – not necessary to file

Canada Revenue Agency Clergy Residence Deduction To claim reduction of income tax at source Request To Reduce Tax Deductions at Source (T 1213) Completed Required CRA annually will send a letter of response Adjust Do by Clergy your calculations with ADP not change deductions until approved

Canada Revenue Agency Employee or Self-Employed If deemed employee then CPP and EI If not deducted payer is responsible deemed self-employed no CPP or EI Intent of Contract of Service (employment) Contract If for Service (Business arrangement) in Doubt review publication RC 4110

Canada Revenue Agency CHAMP – Charities Directorate On-line connections – current Set up My. BA for your Pastoral Charge Set up Direct Deposit to receive payments File G/HST Rebate on-line In your bank in 10 days On-line connections – November 2018 Complete and file T 3010 Working on more

Your Questions Finished Take Canada Revenue Agency five minutes to answer 2 or 3 questions from the Chat Box.

ADP Canada Payroll Should have a basic understanding of payroll Salary/Wages Allowances Taxable Benefits Deductions Government United – Income tax, CPP, EI Church – Pensions, Benefits Employee – Pensions, LTD, Optional Benefits

ADP Canada Payroll All clergy must be paid through ADP Why not all staff? Additional $15. 97 Reports to $31. 93 including annual cost at time of each run On-line Three cost of $1. 14 per pay at no additional cost important reports period

ADP Canada Payroll Reports Pay Period Daily Input Report Financial Pay Year A Report Statements End copy of all reports for the files

Your Questions Finished Take ADP Canada five minutes to answer 2 or 3 questions from the Chat Box.

United Church of Canada General Annual Council Statistical Report Summary of All Receipts Summary of All Disbursements Should Copy balance to the Financial Reports of Annual Report Conference/Presbytery Information Report may include Finances

United Church of Canada Local Pastoral Charge (Congregation) Regular Reporting Monthly/Quarterly Statement of Financial Position (Balance Sheet) Statement of Operations (Income Statement) Statement of Cash Flows List of Cheques Written List of accounts to be paid Annual First Report three plus Notes to the Statements

United Church of Canada Local Pastoral Charge (Congregation) Budget for New Year Best Estimates for Receipts Best Estimates of Expenditures Comparative Anticipated New to prior years increases Ministries/Projects Capital vs Operating Expenses Setting Targets for Restricted Funds

United Church of Canada Local Pastoral Charge (Congregation) Procedures List Duties Weekly, Be Monthly, Quarterly, Semi-Annually, Annually detailed Use Pass as a check list to be sure it’s complete along to your replacement Update as Necessary

Your Questions Finished Take United Church of Canada five minutes to answer 2 or 3 questions from the Chat Box.

Resources United Church of Canada (www. united-church. ca) Financial Handbook for Congregations Trustees Handbook Minimum Salary and Allowances for Clergy Websites: General Council and Related (i. e. united-in-learning. com) Conferences Presbyteries (www. mnwo. ca)

Resources Canada Revenue Agency (www. canada. ca) Newsletters Forms/Updates On-Line Options Representative Accounting and Legal Newsletters Canadian Council of Christian Charities Mentors – church treasurers (former)

Your Turn Question Time Questions from the Chat Room

Thank you and Contacts Thank Hope You for being a part of this evening you have gained new knowledge Special Thanks to Rev. Kristiane Black Technical skills in getting things to work Contact: Clyde Harris CPB clyde@alwynenterprises. ca