On November 21, 2011 President Obama signed the “3% Withholding Repeal and Job Creation Act” which extended the work opportunity tax credit (WOTC) for hiring veterans through December 31, 2012 and also allowed nonprofits to qualify for the credit via a reduction of payroll taxes. Qualifying veterans are those who are disabled, on government assistance, or who have been unemployed for more than 4 weeks in the year prior to being hired. For nonprofit organizations, the credit could be as much as $6,240 for hiring a disabled and unemployed vet, or as little as $1,560 for hiring an able-bodied vet who has been unemployed for at least 4 weeks in the year prior to being hired. Please contact your tax advisor or payroll specialist to determine your eligibility.

IRS Notice 2011-72 tells us that when an employer provides employees with cell phones for business reasons, neither the business nor personal use of the phone results in income to the employee. And here’s the best news of all: No recordkeeping of the usage is required. And, if instead of providing the cell phone the employer reimburses the employee for providing a cell phone for business use, that reimbursement will not be taxable. The guidance applies for all tax years after Dec. 31,2009.

The employee must maintain the type of cell phone coverage that is reasonably related to the needs of the employer's business, and the reimbursement must be reasonably calculated so as not to exceed expenses the employee actually incurs. Additionally, the reimbursement for business use of the employee's personal cell phone cannot be a substitute for a portion of the employee's regular wages.

Currently, 39 states and the District of Columbia require charities that solicit funds within their borders to register with the secretary of state. Churches and religious organizations are generally exempt from the registration requirements in most states; however, some states require churches to register if the church is required to file Form 990, and some states require non-church religious organizations to register. Arizona requires to churches to register, but does not require financial information. Charitable solicitation rules vary from state to state and can be complex. Registration is also normally required for any professional fundraising company hired by the charity. In addition to the cost and time required to prepare the registration forms, most states also require a fee for registration. The states that don’t require registration? Delaware, Idaho, Indiana, Iowa, Montana, Nebraska, Nevada, South Dakota, Texas (except for public safety charities), Vermont & Wyoming.

As organizations renew their healthcare coverage, many are learning about the new nondiscrimination rules. For plan years beginning on or after September 23, 2010, a group health plan (other than a self-insured plan) shall satisfy the requirements of section 105(h)(2) on the Internal Revenue Code of 1986 (relating to prohibition on discrimination in favor of highly compensated individuals). Previously, most health care plans were allowed to provide benefits only to select groups of employees. Group health plans that existed as of March 23, 2010 may be “grandfathered” and continue to escape the nondiscrimination rules. Grandfathered status can be lost if the plan is modified. Two useful articles covering the subject are available by clicking the links below.
http://www.healthcare.gov/news/factsheets/keeping_the_health_plan_you_ha...
http://churchexecutive.com/archives/health-care-reform-impacts-churches-...