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Audit Confirmation 2018

12/14/2018

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​We're coming to the end of 2018, days are getting shorter, countdown to Christmas is on, and snow is falling. Well, not in Vancouver but I'm sure some of you will have a white Christmas. And after Christmas is the time of year I know everyone looks forward to, Audit Season! We've been through a few years now and hopefully the process is getting easier with each passing year. You can find the forms that need to be completed for the audit below in the three easy steps.  

Please note the year required for the T3010 is 2017. Do not feel pressure to complete the T3010 by the audit deadline of February 15, 2019. 


If anyone needs assistance or clarification, please contact me: adria[email protected]

​In order to meet the deadline set out by the CNCA guidelines and give our auditors the time needed to complete the work the last possible date for all church to have their reports into the national office by:​
​Deadline:  FEBRUARY 15, 2019

3 Step Process for Year End Reporting: (to download reports click on 1,2,3)​
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The Audit Report Checklist is a separate form from the Audit Confirmation Form.  This form is to be reviewed by both the Lead Pastor and Council Treasurer before sending in.  Once all items have been attached to the completed checklist please send as a cover to the national office.
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The Audit Confirmation Form has been amended to include more details about costs related to building improvements and changes to capital assets.  The completed form is to be reviewed and signed by both the Lead Pastor and Council Treasurer prior to sending in.
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Council Covenant Form.  Lead Pastors are to review the Council Covenant with their council members.  Each member is to sign once it has been reviewed.

Thank you for your cooperation and timeliness! 
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Clergy Residence Deduction: 2018 Application

10/20/2017

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With 2018 on the horizon it's time to apply for the Clergy Residence Deduction.

To find out more about the deduction and how to apply click: Application for CRD

Please forward this information to all licensed staff members at your church. If you have any questions please submit them through the Foursquare Help Contact Form to the right of the post.

Thank you,

Adrianna Skazlic

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Clergy Residence Deduction: 2017 Application

10/17/2016

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It's that time of year again when all licensed ministers who receive payroll from the church where they serve need to make application to the CRA for approval of the Clergy Residence Deduction for 2017. 
​Everything you need to know about the CRD and how to apply can be found at the following link:  Application for CRD

Please forward this information to all licensed staff members at your church.  If you have questions or need assistance please submit them through the Foursquare Help Contact Form on the right side of this post!
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Serving Jesus with You,
Rhonda Berkhiem
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The Church as Employer (Part 2)

8/29/2016

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Employment and the church can be a puzzling subject for most of us! A large majority of questions I receive are in some way linked to this topic.  And just when you think you have it finally figured out some scenario comes up that let's you know you don't...  

It's important for the church (council) to remember that the moment a decision is made to remunerate a pastor or staff person they automatically become responsible to adhere to the governing authorities and guidelines of our wonderful country!  

​
Before moving onto the technical aspects of employment, payroll and the accounting function I thought it would be helpful to give an overview of the various laws, regulations and policies that influence how we steward this area of the church's ministry.  
Canadian Income Tax Act:    ​When administering payroll, the church’s first obligation is to follow the guidelines of the Income Tax Act (ITA).  There are few cases where a person that is paid by the church would be deemed exempt from taxation as per the ITA.

Regardless of circumstances the church is not authorized to alter or reduce the amounts deducted for Tax, CPP, and EI on amounts paid by the church.  Doing so is a legal offence.
Canada Revenue Agency:  ​The church, as a registered charity, is responsible to deduct all payroll taxes at source. 

​​Taxes are deducted according to the CRA Tax Tables provided on their website or through the Sage accounting program.  

​Deductions are to be remitted on or before the due date set by the CRA.  Failure to do so could result in penalties and interest charges charged to the church.
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Employment Standards & Laws:  The church is obligated to be aware of and follow the standards and laws for employment as set out by both provincial and federal governing authorities.

Each province has it's own set of Employment Standards.  More details can be found on a previous Foursquare Help blog post:  The Church as Employer (Part 1)

Each province also has it's own set of Worker Safety Standards and in some cases will require a yearly insurance premium to be paid to cover work-related accidents or injuries.  For more details on provincial safety standards for your province see :  Safety Standards by Province
Foursquare Administrative Manual:  Our Foursquare policy manual outlines our various obligations as an employer in the following areas:
Privacy Policy

​Hiring/Licensing Policy

Vulnerable Persons Policy

Anti-Bullying/Harassment Policy

If you have a particular question or concern about this topic please complete the Foursquare Help Contact form to the right or Leave a Reply below.

Serving Jesus with You,
​Rhonda Berkhiem
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Donation Records:  Tithe Envelopes

7/28/2016

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The CRA has notified charities of changes to the guidelines for the length of time tithe envelopes are to be kept on file with the church. This length of time has been increased from 2 to 6 years.  
​CCCC made the following statement about the reason for this change:
CRA takes the position that an envelope may be the only source document that may provide proof that a cash donation was made and support the amounts recorded in the ledger...Church offering envelopes are NOT duplicate receipts but documents that enable the Minister to verify donations made for which a deduction or tax credit is available under the Act....see CCCC Bulletin for full article.
This is a good reminder that each offering received by the church should have a corresponding tithe envelope.  Where there is only a cheque, an envelope should be completed for the files with the person’s name and particulars. ​

​For more information on how long to keep records and maintaining donation records click on links below:
Books & Records
Donation Record Maintenance
If you have questions about this topic or need further assistance please complete the Foursquare Help Contact form or Send a Reply.

Serving Jesus with you,
​Rhonda Berkhiem
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CIBC Banking - New Service Advisor

7/26/2016

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The CIBC Business Contact Center has notified us of a change in our current Service Advisor.  

​Effective today, Alana King will be our new contact on all our Foursquare accounts.  Contact details can be found here for assistance with any questions or issues you may have with your church bank account.

To set up new bank accounts or to make changes to existing accounts, add/remove signors or request a Convenience Card please contact Dana at the national office.
If you have questions or need assistance please complete the Foursquare Help Contact form or Send a Reply.

Serving Jesus with You,
​Rhonda Berkhiem
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The Church as Employer

4/19/2016

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As pastors and leaders in the church we find ourselves perplexed by a paradox that others rarely experience. There are very few pastors who view their ministry as simply a job!

At times however there can be a tension between being obedient to the call of Jesus in pastoral ministry but also realizing that we are viewed as employees of the local churches where we serve.  Lead pastors have the added complexity of also having to act in the capacity of an employer.

Canadian laws around employment apply equally to the church as they would any other organization or business.  When a church enters into an arrangement where a person is being paid all of these laws and regulations begin to apply.

Each province across Canada has its own specific code for labour standards.  It's important for pastors and church councils to familiarize themselves with the applicable codes to ensure decisions are in compliance.
For full details on standards by province please click here:
Provincial Labour Standards
Our Foursquare Administrative Manual outlines the various duties and responsibilities
​of all local churches and pastors:
Personnel
Church Council
If you have questions about the Church as Employer or provincial standards please complete the Foursquare Help Contact form to the right of this post or Leave a Reply below.

Serving with You!
​Rhonda Berkhiem
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Employment & the Church

4/13/2016

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Once the church has decided to enter into a payroll arrangement with a pastor or staff person there are numerous items to be considered even before the first payroll cheque is written.  
​
We will go into each area more in-depth over the coming weeks but for today here’s a snapshot of important topics on employment and the Church:
  1. What are Provincial Employment Standards and how do they apply to the church?
  2. What are Provincial Employee Safety Standards and how do we set up an account?
  3. What are important steps to remember for New Employees & Terminations
  4. How does the Income Tax Act apply to the church?
  5. What amounts are included for Other Incomes & Benefits?
  6. What are Allowable Deductions and Clergy Residence?
  7. How are Payroll Taxes calculated & Payments made to CRA?
  8. How are T4’s issued and reported to the CRA?
I have been receiving requests for specific topics that you would like to see posted on the blog!  

​All suggestions are welcome so if you have a specific payroll question or know of another needed topic then complete the Foursquare Help Contact form to the right of this post or Leave a Reply below.
​
Serving with You!
Rhonda Berkhiem
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Volunteers!

4/11/2016

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One of the most valuable resources we have are the servant-hearted volunteers that support and extend the ministry of the local church.  It should be noted that over 50% of our Foursquare lead pastors are bi-vocational and volunteer all or a significant amount of their time to the ministry of church!!
That's a lot of volunteers!
Let's give 3 cheers for Jesus' gifts to the church!!
It's not unusual then for churches to seek ways to show their appreciation for the sacrificial time that is made by their leaders and those who serve with them.  Most times this will come in the form of a financial gift or honorarium that acknowledges their contribution but doesn't fully compensate the total time given.
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The work of a volunteer is an integral part of ministry work and is under the overall direction of the local church.  Whether it is the intended purpose of the church or not, when an individual begins to be compensated the relationship can change from a voluntary/volunteer position to an employment position with all the legal and employer obligations that go with it.  

It is recommended that ​the church take time to carefully consider when making gifts or payments to volunteers.  Whether its called a gift or an honorarium or anything else, amounts paid under certain circumstances could be considered employment income.

If the church is not in a financial position to meet these obligations it should refrain from compensation until another time.  If the church decides to proceed then there should be clear communication between the church and the person as to the expectations and obligations that are now a part of the employment relationship.


Below are 2 common scenarios and the recommended course of action:

One Time Gifts Less than $500

​If the amount paid is one-time and under $500 in one calendar year then the amount may not be considered employment income.  In this case no deductions would be taken and no T4 reporting is required.  

If amounts exceed $500 in a calendar year the whole amount becomes taxable as employment income.

Systematic Payments exceeding $500

If the total of gifts in a calendar year is over $500 and/or begin to be paid in a systematic way (ie. weekly or monthly) then it is considered employment income.

All applicable payroll deductions are to be taken and a T4 is to be issued at the end of the year.

Note: a more detailed explanation of employment income, payroll deductions and reporting will be provided in an upcoming blog post.
If you have questions about Gifts to Volunteers please complete the Foursquare Help Contact form to the right of this post or Leave a Reply below.

Serving with You!
Rhonda Berkhiem
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Contract Workers

4/7/2016

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​Periodically I receive questions about whet
her a person can be considered a contract worker rather than an employee.

There may be situations where compensated persons are considered contract workers.  The CRA has very definite guidelines that help determine whether a person is under contract or an employee.
​
These include:

  • Control over work tasks and performance
  • Ownership of equipment and supplies
  • Opportunity for profit/loss
  • Integration of the work with the worker’s economic activities
  • Whether there is more than one place of employment

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Functions in the church that could legitimately be considered contract would be janitorial, accounting, trades, and specialized professionals. 

​In each of these circumstances proof would need to be given that the church does not have control over the work and that these persons are receiving compensation from other contract positions.
Note:  Any licensed ministers of Foursquare Canada (lead pastors, staff pastors, and ministry leaders) and church member who are ministry volunteers would not qualify as contract workers.  People in these positions who are compensated are considered employees of the church.
If you have questions about Contract Workers please complete the Foursquare Help Contact form to the right of this post or Leave a Reply below.

Serving with You
​Rhonda Berkhiem
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