Updated February 7, 2014
Maximum earnings subject to Social Security for 2014 is $117,100.
Maximum voluntary contribution to your 403b for 2014 is $17,500. For employees 50 years of age or older, they may also make up to $5,500 in "catch-up" contributions.
The Social Security tax rate will remain at 6.2 percent for the 2014 year. The Medicare tax will remain at 1.45 percent, for a combined total tax of 7.65 percent.
Imputed Value of Group Term Life Insurance
The IRS has determined that the value of GTL insurance is taxable. In addition to any group life insurance that the church may provide, Church Pension Fund provides additional coverage to all active clergy participating in the pension fund and active lay employees who participate in the lay defined benefit pension plan. Annually, reports reflecting the value of this benefit are mailed to the churches so that these amounts can be included in an employee's W-2. The 2013 reports were mailed 12/17/2013 for all Group Term Life Insurance coverage known to the Church Pension Group. If your employer provides additional GTL coverage, please look to the compensation guidelines for assistance in making sure the employer calculates the appropriate amount. This amount of "imputed" income is reported in Bix 12 of the W-2, with Code C next to it. If you have any questions about this report, please contact the Treasurer's office.
In 1999 the Diocese of Virginia joined the National Payroll Account Program. This program provides the Episcopal Churches and related institutions with a standardized and Episcopal church-specific payroll service at a very reasonable cost.
What are the advantages to you?
- Clergy compensation is handled according to IRS regulations and W-2's are printed correctly.
- The diocese and Church Pension Fund can respond on behalf of the church if any problems develop.
- Semi-monthly and monthly payrolls are allowed and you need to report ONLY changes and hours for hourly employees.
- ADP, the payroll processor, makes ALL tax deposits (from your account) and files all tax reports.
- Employees’ checks can be deposited directly into their bank accounts. This is on a “per employee” basis so it is not necessary for everyone to choose this option. Employees can have their paychecks deposited into more than one account, which can be very helpful for specific savings purposes.
- “New Hire” reporting will be done automatically. This is required by the Commonwealth of Virginia.
- The Church saves Time and Money.
How much does it cost?
Visit the Church Pension Fund website, www.cpg.org, for more updates.
How do you enroll in the Church Pension Fund Payroll Program?
Contact Stas Jones, 800-DIOCESE x1022.