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New Tax on Parking Provided for Church Employees

On 12/14/2018, Wespath and GCFA legal staff provided their interpretations of the new (2018) IRS guidance concerning potentially taxable parking lot expenses (Wespath) see also White Paper(GCFA) and taxable fringe benefits for church staff. This will not affect most churches that do not reserve parking spaces for employees and do not reserve paid parking spaces for non-public parking. This change, along with the change that made moving expenses paid by church employers no longer tax exempt, was part of the tax bill passed by Congress in December 2017, effective January 1, 2018.

According to conference treasurer Jim Allen, each church is responsible for interpreting and complying with changes in payroll, tax, and other laws. For a few of our churches, these changes could affect how year-end W-2s and related filings and (rarely) 990Ts are completed. Churches are required to provide W-2s to their pastor and other employees by January 31, 2019.