The Alexandria and Arlington Districts are excited to welcome new clergy to our Districts in the coming weeks. Return to this page for photos, bios and fun facts about our new clergy coming soon!
New clergy: Please be sure to fill out your New Clergy Bio Form!
New Clergy Bio Form
Tax Changes Regarding Moving Expenses
*IMPORTANT: Tax changes effect on moving expenses*
Effective 1/1/2018, the Tax Cuts and Jobs Act removed the exclusion of moving expenses as a fringe benefit to employees. Employees (except for certain members of the Armed Forces) will now pay taxes on moving expenses provided by employers, whether the employer directly pays for the moving expenses or the employee is reimbursed from the employer for the moving expenses.
This change impacts our clergy and churches in two ways:
Treasurers must *add the moving expenses to the W2* box 1 and box 16 at the end of the year, so it is reported properly as taxable income. Keep in mind that pastors have ‘dual-tax status’ by IRS rules, meaning that they are ‘common law’ employees of their church, so they must receive a W2 at the end of the year. Pastors are ‘self-employed’ for Social Security and Medicare purposes, meaning the church does not withhold or pay Social Security or Medicare.. Pastors are individually responsible for filing a quarterly tax estimate on Form 1040 ES.
Moving expenses are now considered ‘pensionable compensation’ by Wespath. Pastors and treasurers will receive instructions to *report moving expenses on the EVC website,* so the pension amount is properly calculated for your pastor. An additional pension bill will come from VUMPI in the fall with the amount due by the church.
Moving expenses *cannot be reported* as Accountable Reimbursement or as Housing Exclusion. Please be sure that moving expenses are properly handled by your church to avoid penalties by the IRS or misrepresentation of the pensionable compensation.
If you have questions, please give the Treasurer’s Office or VUMPI a call at 804-521-1100.