Key Takeaways − A youth pastor or associate pastor can claim a housing allowance if they meet the IRS definition of a minister and the church properly designates the allowance in advance. A pastoral housing allowance is a portion of a minister’s compensation designated for housing expenses and can be excluded from federal income tax, […]
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IRS Rules for Minister’s Housing Allowances: Documentation and Reporting
Do you run a church, ministry, or faith-based nonprofit? If so, payroll and taxes can feel complicated, especially when clergy housing allowances enter the picture.
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How to Accurately Calculate a Clergy Housing Allowance
Key Takeaways − A clergy housing allowance lets qualifying ministers exclude part of their compensation from federal income tax, up to certain limits. The church or organization must officially designate the allowance in advance. The excludable amount is the lowest of 1) The amount officially designated as housing allowance, 2) The minister’s actual housing expenses, […]
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No Tax on Tips: How Is Payroll Affected?
Tipped income is already complicated. And it got even more complex with the passage of the One Big Beautiful Bill Act (OBBBA) in 2025, which brought major tax changes. One of the biggest? Certain tipped employees will no longer pay federal income tax on their tips.
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No Tax on Overtime: What to Know
Tucked inside the massive One Big Beautiful Bill Act (signed on July 4, 2025), the new “no tax on overtime,” rule gives many hourly workers a reason to pay closer attention to their pay stubs. Retroactive to January 2025, eligible employees can deduct a chunk of their overtime earnings from their federal taxable income. The […]
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Payroll Trends for Small Businesses in 2026
Employee count, compensation, benefits, and taxes are all key components of payroll, the process of paying your employees. Changes in the economy, employees’ priorities, and technology shape everything from how you run payroll to your payroll costs. Are you staying on top of the latest payroll trends?
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How to Gross up Payroll
If you want to pay an employee supplemental compensation, such as a bonus or a relocation payment, you must withhold payroll taxes just like with regular wages. But, what if you want an employee to receive a specific amount after taxes? That is when you gross-up payroll figures. And to do that, you need to […]
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How to Pay Yourself from Your Business | Salary vs. Draw
Running your own business doesn’t mean you sit around as stacks of cash come flooding into your office. Business owners are busy nonstop to keep up with operations. Since running a business is your full-time job, you need to know how to pay yourself from your business.
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Understanding Publication 1542 Per Diem Rates
You might have heard about per diem pay before. But, are you familiar with Publication 1542? Learn more about Publication 1542 per diem rates and how to calculate per diem pay below.
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What Is Per Diem? How to Cover Employees’ Travel-related Business Expenses
When employees incur travel-related business expenses, you might consider covering their costs. You can reimburse employees for expenses by giving them per diem pay. What is per diem pay?
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