I'm continually blessed by the number and the amazing quality of gifted adminstrative people we have within our Foursquare family across Canada. In most cases these people work quietly behind the scenes but their service to the Lord and the strength they bring to the ministry of the churches cannot be overlooked. Thank YOU so much for all you do!
At the beginning of this week I sent out an update for applying for the Clergy Residence Deduction (CRD). From that email I had dialogue with 2 amazingly administrative-minded people that provided some additional information on this topic. The following questions/answers were:
Question 1: Is it mandatory that the CRD be applied for and used in the payroll calculation through the church or can the entire CRD be claimed at the end of the year on my personal tax return?
Answer: No, it is not mandatory and Yes, the entire amount of the CRD can be claimed at the end of the year on the personal tax return. The T1223 is still required to be completed and verified/signed by the church. This form does not have to accompany the tax return but kept on file with the personal tax return in the event CRA requests it.
It is recommended that the CRD be applied for and used in the calculation of payroll as it saves the church's portion of CPP. This leads to the next question:
Question 2: What if the gross yearly payroll is over a certain amount and, even after applying the CRD, the maximum CPP would still be deducted? Should the CRD still be used in the payroll calculation?
Answer: No but maybe...an example may be helpful.
The gross yearly salary is $60,000 and the allowable CRD is $18,000. The amount that would be used to calculate income tax + CPP would then be $42,000. **EI is not affected by the CRD.
The maximum level of income that CPP is calculated on for 2012 is $46,600. Using the example above, the CRD would only provide a savings to the church on the CPP paid over $42,000. In this case and for those instances that the CPP maximum would be paid, it may not be necessary to claim the CRD on payroll.
However, the person claiming the CRD may still want to have this applied to their payroll as it will provide the personal income tax savings throughout the year rather than receiving a tax return at the end of the year. It's completely up to the individual whether they want to go through the process of making application to CRA... or not :)
I hope you find this useful...thanks to a little help from my administrative friends,
Rhonda Berkhiem
Useful Quote of the Day: But in your hearts set apart Christ as Lord. Always be prepared to give an answer to everyone who asks you to give the reason for the hope that you have. But do this with gentleness and respect. 1Peter 3:15
Saturday, January 21, 2012
Thursday, June 30, 2011
Insurance: Camps, Legal Advice and More
The question recently came up about our insurance coverage with Westland Insurance: Do we have adequate liability coverage for summer youth & children's camps?
The response from Westland was:
The insurance policy of the hosting church and/or national church may not respond in the event a claim is made. If the church is with Westland insurance, the policy will only provide coverage for member/children from your church.
In all cases, it's best to double check to be sure.
Free Alert!! For those churches who have their insurance through Westland, the Lombard Policy provides Free and Confidential Legal Assistance. These services would include labour law, tax law, administrative law, and employment law.
The number is 1.800.786.0656 and is available from 9a.m. to 8p.m. Monday to Friday (EST).
Legal advice (billable) is still available through the FGCC legal counsel.Please note that situations that result in actual litigation suits or criminal charges are to be reported immediately to the national office.
Finally, a correction needs to be made on the Insurance post from April 2011 with regards to Abuse Coverage. The post stated that if you are insured through Westland Insurance the church is automatically covered under the national church policy at no extra charge to the national office or individual church. However, there will be a charge to the church for the coverage at a prorated/reduced rate (based on membership) under the national church plan. Sorry for any confusion this may have created.
If you still have questions or concerns about your church insurance policy please contact the national office.
Blessings on your Canada Day weekend!
Rhonda Berkhiem
The response from Westland was:
For the churches that are listed on the policy and their own members/children are participating in the camps the Lombard Policy would respond.What this means is that if your church has insurance coverage with another provider (not Westland) and will be sending youth or children to a Foursquare camp you need to ensure the church policy includes camps and events.
For those churches that have insurance elsewhere, they would have to check with their insurers/brokers to see if it is covered or if they need an extension or separate event coverage.
The insurance policy of the hosting church and/or national church may not respond in the event a claim is made. If the church is with Westland insurance, the policy will only provide coverage for member/children from your church.
In all cases, it's best to double check to be sure.
Free Alert!! For those churches who have their insurance through Westland, the Lombard Policy provides Free and Confidential Legal Assistance. These services would include labour law, tax law, administrative law, and employment law.
The number is 1.800.786.0656 and is available from 9a.m. to 8p.m. Monday to Friday (EST).
Legal advice (billable) is still available through the FGCC legal counsel.Please note that situations that result in actual litigation suits or criminal charges are to be reported immediately to the national office.
Finally, a correction needs to be made on the Insurance post from April 2011 with regards to Abuse Coverage. The post stated that if you are insured through Westland Insurance the church is automatically covered under the national church policy at no extra charge to the national office or individual church. However, there will be a charge to the church for the coverage at a prorated/reduced rate (based on membership) under the national church plan. Sorry for any confusion this may have created.
If you still have questions or concerns about your church insurance policy please contact the national office.
Blessings on your Canada Day weekend!
Rhonda Berkhiem
Friday, June 10, 2011
BANKING: Government Payments
As I'm writing this post I am also taking a very deep breath and exhaling...great self-control is required when communicating about questions concerning CRA payroll accounts :)
In particular, when payments for individual church payroll deductions are misapplied to wrong accounts or to the national office payroll account by the CRA.
We may have a solution to the problem but it will require a bit of action on your part:
I have been in discussion with the CIBC Bank over the past few weeks to confirm a simple process for our churches to set-up Online Government Payments for payroll deductions. If the church is still mailing in payments to the CRA it's highly recommended moving to a direct pay method.
First, it will ensure that payments will be applied to the correct account. Second, it will save time from preparing cheques or travelling to make payments at the bank. Finally, if payments are being mailed they will not be delayed by the current mail disruptions. But that's another story!
For those churches that are currently banking with CIBC, please contact Charmaine Provost directly by email at charmaine.provost@cibc.com or you can also contact her by phone at 604.665.1008. If you have questions or would like more information before proceeding please let me know.
Hope this is useful!!!
Useful Quote of the Day:
Wayne Gretzky
In particular, when payments for individual church payroll deductions are misapplied to wrong accounts or to the national office payroll account by the CRA.
We may have a solution to the problem but it will require a bit of action on your part:
I have been in discussion with the CIBC Bank over the past few weeks to confirm a simple process for our churches to set-up Online Government Payments for payroll deductions. If the church is still mailing in payments to the CRA it's highly recommended moving to a direct pay method.
First, it will ensure that payments will be applied to the correct account. Second, it will save time from preparing cheques or travelling to make payments at the bank. Finally, if payments are being mailed they will not be delayed by the current mail disruptions. But that's another story!
For those churches that are currently banking with CIBC, please contact Charmaine Provost directly by email at charmaine.provost@cibc.com or you can also contact her by phone at 604.665.1008. If you have questions or would like more information before proceeding please let me know.
Hope this is useful!!!
Useful Quote of the Day:
Wayne Gretzky
Wednesday, April 20, 2011
Foursquare Benefits: Pension Plan Update
It's been a year since we initiated the process to transfer our pension plan provider from CCCC (Great West) to Manulife. Maybe you have been asking the question, "I wonder what's happening with the pension transfer?"
The answer is, it's done! I received notification today from Manulife that the funds were received today and are invested into the individual member accounts. The main screens on their account system only update once a month so these amounts will not show up online until May 1.
Because this is a Registered Pension Plan with the CRA it has required that each province give approval to set up the new account and transfer the funds. We received the final provincial approval a few weeks ago.
A formal letter will be included in the next billing cycle to give to your pension plan members. If you have questions or there has been anything overlooked on your account please let me know right away so it can be investigated.
Thank you for your patience!
Rhonda Berkhiem
Useful Quote of the Day:
No great work is ever done in a hurry. To develop a great scientific discovery, to paint a great picture, to write an immortal poem, to become a minister, or a famous general~~to do anything great requires time, patience, and perseverance.
~~W. J. Wilmont Buxton~~
The answer is, it's done! I received notification today from Manulife that the funds were received today and are invested into the individual member accounts. The main screens on their account system only update once a month so these amounts will not show up online until May 1.
Because this is a Registered Pension Plan with the CRA it has required that each province give approval to set up the new account and transfer the funds. We received the final provincial approval a few weeks ago.
A formal letter will be included in the next billing cycle to give to your pension plan members. If you have questions or there has been anything overlooked on your account please let me know right away so it can be investigated.
Thank you for your patience!
Rhonda Berkhiem
Useful Quote of the Day:
No great work is ever done in a hurry. To develop a great scientific discovery, to paint a great picture, to write an immortal poem, to become a minister, or a famous general~~to do anything great requires time, patience, and perseverance.
~~W. J. Wilmont Buxton~~
Wednesday, April 13, 2011
Insurance: Clarity on Coverage
I have received many emails and phone calls over the past month or so on Liability Insurance coverage for the churches.
The most frequently asked question has been, "Does the church need to have Abuse/Counselling coverage and Directors' Liability insurance included in their policy?" There is more than one answer depending on who your insurance provider is:
The Foursquare Gospel Church of Canada (national office) uses Westland Insurance as our liability/property insurance provider. Brenda Erickson, our Westland representative, has provided us with details that should bring more clarity to what is required for each of our churches.
If your church is insured with Westland Insurance then you are not required to obtain additional coverage for Abuse/Counselling liability. You are automatically covered under the national church policy at no extra charge to the national office or individual church.
However, if you are with another insurance provider you will not be covered for this under the national office insurance and will need to have this specifically included in your individual insurance coverage. This is an additional charge and depending on your provider can be costly.
Directors' Liability insurance is covered under the national church policy and is not required for the churches. The national board is legally responsible for the operations of the national church and/or any liability that may flow from decisions made at the local church level.
If you are a church plant and are conducting services in rented/leased facilities you are required to have insurance coverage for public liability and property. Coverage is provided under the national office policy for a small fee ($75).
The Administration Manual (Tab 5, Part 6.0) itemizes the types of coverage that are to be included in the church's insurance coverage. Please note that the Foursquare Gospel Church of Canada, as holding title to all church property, is to be the named insured for insurance purposes. The church may also be named as secondary benificiary.
Please take the time to review the Foursquare policy and your individual church coverage. If you need further assistance then please contact the national office.
You can also contact Brenda at Westland Insurance directly at 604.543.7788 or berickson@westland-insurance.com if you have questions or you would like to obtain a quote for insurance coverage.
Rhonda Berkhiem
Quotable Quote:
For a long time it had seemed to me that life was about to begin - real life. But there was always some obstacle in the way, something to be gotten through first, some unfinished business, time still to be served, a debt to be paid. Then life would begin.
At last it dawned on me that these obstacles were my life.
... Alfred Souza
The most frequently asked question has been, "Does the church need to have Abuse/Counselling coverage and Directors' Liability insurance included in their policy?" There is more than one answer depending on who your insurance provider is:
The Foursquare Gospel Church of Canada (national office) uses Westland Insurance as our liability/property insurance provider. Brenda Erickson, our Westland representative, has provided us with details that should bring more clarity to what is required for each of our churches.
If your church is insured with Westland Insurance then you are not required to obtain additional coverage for Abuse/Counselling liability. You are automatically covered under the national church policy at no extra charge to the national office or individual church.
However, if you are with another insurance provider you will not be covered for this under the national office insurance and will need to have this specifically included in your individual insurance coverage. This is an additional charge and depending on your provider can be costly.
Directors' Liability insurance is covered under the national church policy and is not required for the churches. The national board is legally responsible for the operations of the national church and/or any liability that may flow from decisions made at the local church level.
If you are a church plant and are conducting services in rented/leased facilities you are required to have insurance coverage for public liability and property. Coverage is provided under the national office policy for a small fee ($75).
The Administration Manual (Tab 5, Part 6.0) itemizes the types of coverage that are to be included in the church's insurance coverage. Please note that the Foursquare Gospel Church of Canada, as holding title to all church property, is to be the named insured for insurance purposes. The church may also be named as secondary benificiary.
Please take the time to review the Foursquare policy and your individual church coverage. If you need further assistance then please contact the national office.
You can also contact Brenda at Westland Insurance directly at 604.543.7788 or berickson@westland-insurance.com if you have questions or you would like to obtain a quote for insurance coverage.
Rhonda Berkhiem
Quotable Quote:
For a long time it had seemed to me that life was about to begin - real life. But there was always some obstacle in the way, something to be gotten through first, some unfinished business, time still to be served, a debt to be paid. Then life would begin.
At last it dawned on me that these obstacles were my life.
... Alfred Souza
Wednesday, March 9, 2011
Banking - Signing Authorities, Online Banking & Credit Cards
This blog is going to be a three-in-one post. They're actually three different topics but they are all linked by one common denominator. That is, the policy that all disbursements made by the church are required to have 2 signatures for approval.
All bank accounts should be set up with at least 3 signing authorities. This can be the pastor and 2 or more other people. They can be council members and/or administrative people. There should never be signors on the account that are related (ie pastor and spouse or family member). All cheques are to be signed by two authorized persons. Administration Manual Tab 5, Part 4.4,5
For convenience cards (online banking/debit cards) transactions, the 2 signature policy is also in effect. This means that convenience cards can be set up for deposits, online inquiries, and online bill payments (with approval). However, these cards should not be set up with debit capabilities as this bypasses the signature policy. In this case, the purchases still needs to be made by the individual and then claimed for reimbursement. This will also help prevent funds from being expended that have not been first approved.
For this same reason, the church should not take on the responsibility of debt incurred for the personal credit cards of council members, pastors or staff for church expenses. Purchases are to be made with prior approval and submitted for reimbursement and supported with receipts. See Adminstration Manual: Tab 3, Part 4.0, #15; Tab 4, Part 4.4; Tab 4, Part 5.2, #6
In our day of modern convenience and the need to simplify its very easy to overlook the importance of a policy like this. However, the extra effort and inconvenience is worth it. Not only does it give credibility and integrity to the accounting system of the church and ensure that funds are being spent for their intended purpose. But, most importantly, it protects those very people who so faithfully serve the church in this capacity. From those who count the offerings to the bookkeeper, and from the council to the pastor. One small thing can protect so many....
Useful Quote of the Day:
Worship is giving God the best that He has given you. Be careful what you do with the best you have. Whenever you get a blessing from God, give it back to Him as a love gift. Take time to meditate before God and offer the blessing back to Him in a deliberate act of worship. God will never let you hold a spiritual thing for yourself; it has to be given back to Him that He may make it a blessing to others.
All bank accounts should be set up with at least 3 signing authorities. This can be the pastor and 2 or more other people. They can be council members and/or administrative people. There should never be signors on the account that are related (ie pastor and spouse or family member). All cheques are to be signed by two authorized persons. Administration Manual Tab 5, Part 4.4,5
For convenience cards (online banking/debit cards) transactions, the 2 signature policy is also in effect. This means that convenience cards can be set up for deposits, online inquiries, and online bill payments (with approval). However, these cards should not be set up with debit capabilities as this bypasses the signature policy. In this case, the purchases still needs to be made by the individual and then claimed for reimbursement. This will also help prevent funds from being expended that have not been first approved.
For this same reason, the church should not take on the responsibility of debt incurred for the personal credit cards of council members, pastors or staff for church expenses. Purchases are to be made with prior approval and submitted for reimbursement and supported with receipts. See Adminstration Manual: Tab 3, Part 4.0, #15; Tab 4, Part 4.4; Tab 4, Part 5.2, #6
In our day of modern convenience and the need to simplify its very easy to overlook the importance of a policy like this. However, the extra effort and inconvenience is worth it. Not only does it give credibility and integrity to the accounting system of the church and ensure that funds are being spent for their intended purpose. But, most importantly, it protects those very people who so faithfully serve the church in this capacity. From those who count the offerings to the bookkeeper, and from the council to the pastor. One small thing can protect so many....
Useful Quote of the Day:
Worship is giving God the best that He has given you. Be careful what you do with the best you have. Whenever you get a blessing from God, give it back to Him as a love gift. Take time to meditate before God and offer the blessing back to Him in a deliberate act of worship. God will never let you hold a spiritual thing for yourself; it has to be given back to Him that He may make it a blessing to others.
Sunday, March 6, 2011
National Office Reports: Gold Sheets
Many of you have been hearing from Jasmine quite a bit lately. She has taken on the enviable job (not:) of sending out reminders for monthly reporting and following up if they are overdue. We're very grateful for her willingness to take on this very useful but sometimes thankless task!
At our monthly meeting this past week she made the comment that she gets the question quite frequently: What is the Gold Sheet?
This question didn't surprise me as we have so many new leaders and churches coming from different church backgrounds. Which is great! We also have been restructuring the national office reporting process so this may be generating some uncertainty as to what reports are required.
The following will be useful in keeping current:
Up until recently, the Gold Sheet has been the monthly reporting requirement of all registered Foursquare churches. The report includes both Ministry and Money information. The form can be downloaded from the home page of the Foursquare website http://www.foursquare.ca/.
The Ministry side of the report provides the national office with statistical data like attendance, salvations, baptisms (water/Holy Spirit), healings and testimonies.
The numbers from each church are combined together and published in our yearly Annual Report which then gets distributed to all licensed ministers in the AGM packet for convention. They also become part of the global report published by Foursquare International.
The Money side of the report provides the financial activities and position of the church. Some of the financial data is also combined and reported in the Annual Report but are not reported in the global report.
For those churches who have been set up on the Confluent Accounting system the Money side of the Gold Sheet is no longer required. Reports are now generated right from the accountings system and are called either "Financial Reports" or "Financial Statements". The Ministry side of the report still needs to submitted along with the financial statements.
Church Plants are also responsible for the same monthly reporting, however, their reports are submitted directly to the mother church (including extension tithe). The mother church includes the ministry/financial information of each church plant along with their reports when submitting to the national office.
We will be creating a new Ministry report in the near future as the current one doesn't fully reflect the ministry that our churches need to report. Jasmine will be revising the form with a new format and name. Your comments and suggestion about the form are welcome so please email her directly at jasmine@foursquare.ca.
The new Ministry report will have a separate section on the form for church plants. For the time being, please attach the church plant reports to the mother church reports. The financial reporting should be reported within the financial statements of the mother church.
Once the new Ministry form has been created and all our churches have been set up on the Confluent Accounting system there will no longer be a Gold Sheet.
****
Whether ministry or money, keeping current on your reporting is important. A case in point that you can confirm for yourself from this years Annual Report. Over the past ten years we have averaged, together, between 500-700 salvations annually. Last year's report (July 30/10) showed only 330. If you didn't submit your ministry reports then you weren't included in the count. Please know that your ministry and reports do matter!!
Useful Quote of the Day:
"God's purpose has always been about redeeming a people...there is a radical difference between leading one person to faith and leading a people to faith. The former produces a follower of Jesus Christ; the latter produces a movement of Jesus Christ. The first requires one heart bound to God. The second requires many hearts bound together in God...God sent his Son not only to call individuals to himself, but also to transform culture. And he prays for us that we would be one even as he and the Father are one."
Erwin Raphael McManus, An Unstoppable Force.
At our monthly meeting this past week she made the comment that she gets the question quite frequently: What is the Gold Sheet?
This question didn't surprise me as we have so many new leaders and churches coming from different church backgrounds. Which is great! We also have been restructuring the national office reporting process so this may be generating some uncertainty as to what reports are required.
The following will be useful in keeping current:
Up until recently, the Gold Sheet has been the monthly reporting requirement of all registered Foursquare churches. The report includes both Ministry and Money information. The form can be downloaded from the home page of the Foursquare website http://www.foursquare.ca/.
The Ministry side of the report provides the national office with statistical data like attendance, salvations, baptisms (water/Holy Spirit), healings and testimonies.
The numbers from each church are combined together and published in our yearly Annual Report which then gets distributed to all licensed ministers in the AGM packet for convention. They also become part of the global report published by Foursquare International.
The Money side of the report provides the financial activities and position of the church. Some of the financial data is also combined and reported in the Annual Report but are not reported in the global report.
For those churches who have been set up on the Confluent Accounting system the Money side of the Gold Sheet is no longer required. Reports are now generated right from the accountings system and are called either "Financial Reports" or "Financial Statements". The Ministry side of the report still needs to submitted along with the financial statements.
Church Plants are also responsible for the same monthly reporting, however, their reports are submitted directly to the mother church (including extension tithe). The mother church includes the ministry/financial information of each church plant along with their reports when submitting to the national office.
We will be creating a new Ministry report in the near future as the current one doesn't fully reflect the ministry that our churches need to report. Jasmine will be revising the form with a new format and name. Your comments and suggestion about the form are welcome so please email her directly at jasmine@foursquare.ca.
The new Ministry report will have a separate section on the form for church plants. For the time being, please attach the church plant reports to the mother church reports. The financial reporting should be reported within the financial statements of the mother church.
Once the new Ministry form has been created and all our churches have been set up on the Confluent Accounting system there will no longer be a Gold Sheet.
****
Whether ministry or money, keeping current on your reporting is important. A case in point that you can confirm for yourself from this years Annual Report. Over the past ten years we have averaged, together, between 500-700 salvations annually. Last year's report (July 30/10) showed only 330. If you didn't submit your ministry reports then you weren't included in the count. Please know that your ministry and reports do matter!!
Useful Quote of the Day:
"God's purpose has always been about redeeming a people...there is a radical difference between leading one person to faith and leading a people to faith. The former produces a follower of Jesus Christ; the latter produces a movement of Jesus Christ. The first requires one heart bound to God. The second requires many hearts bound together in God...God sent his Son not only to call individuals to himself, but also to transform culture. And he prays for us that we would be one even as he and the Father are one."
Erwin Raphael McManus, An Unstoppable Force.
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