Expenses from your ministry work with the CMM can be reimbursed through Expensify.
These reimbursements are made from the requested Ministry Account to your bank account pre-tax.
See the Expense Reimbursements Policy in the Finance Handbook.
SIX ACTIVITIES THAT CAN BE EXPENSED
Mobilization and Personal Ministry - no matter what role you play at the CMM, we are all expected to be actively engaged in Mobilization and Personal Ministry.
Food- meals, coffee, etc bought during mobilizing and personal ministry.
Transportation - mileage, airfare, uber etc. to get to and from mobilization and personal ministry.
Lodging- overnight stays during mobilization and personal ministry activity.
Hospitality/Gifts - situations where you want to honor your hosts, buy a gift for your Xplore group, or get a gift for a disciple etc.
2. Fund Raising - While we all support raise during our initial assignment with the CMM, if we learned any thing from boot-camp, our support raising journey doesn't end there. Whether you are building your initial support team, raising funds for your team or raising corporate funds, these expenses should remain constant.
Food - Meals/Coffee purchased during support raising.
Transportation - Mileage, airfaire, uber etc. to get to and from support appointments
Supplies - Any materials purchased to assist you in support raising
Lodging - Overnight stays while traveling for support raising.
Donor Communication - Stamps, letters, gifts to donors etc.
3. Event Hosting - Whether it's SRS, GMC, or Staff Conference. We host a lot of events at the CMM. These expenses should not be confused with small gatherings during your Mobilization or Personal Ministry. For a gathering to be considered a CMM Event, it would need to be planned by and include an entire CMM team.
Venue - Paying for venue at which the event will take place.
Materials - Materials purchased to be used during the event
Transportation - Mileage, airfaire, uber etc. to get to and from the event. May also include transportation for attendees.
Lodging- Overnight stays while at event. May also include lodging for attendees.
Food - Meals while at and traveling to event. May also include attendees.
Activities - Paying for additional activities for attendees of an event.
Honorarium - Paying speakers and musicians etc.
Shipping - Shipping of any materials to the event location.
4. Resource Development - Creating everything from new translations of Xplore, new books, or materials used for recruiting or fund raising.
Translating - Paying contractor to translate resource.
Shipping- Shipping resource to it's end destination
Typesetting/Editing - Paying contractor to edit and or design resource.
Printing- Printing of new resource.
5. Recruiting - Meeting with individuals one-on-one, speaking to large groups, or attending conferences to meet potential recruits.
Food- Food/coffee/snacks purchased during or while traveling to recruiting events.
Transportation - Mileage, airfaire, uber etc. to get to and from recruiting events
Lodging - Overnight stays while traveling for recruiting
Fees/Registration - Costs for signing up for event attended for recruiting
Materials - Any materials purchased to assist you in recruiting efforts.
6. Operations/Administration - No matter what role you serve in, each of us do administrative tasks each day. An administrative task is one that doesn't fit squarely into any of the other categories listed.
Food - Food for office events or while traveling for administrative reasons
Transportation - Mileage, airfaire, uber etc. related to administrative travel
Lodging - Overnight stays while traveling for administrative reasons
Postage - Postage for mail
IT - Paying for hardware or software
Staff Development - Expenses related to staff development (Food, travel, lodging, resources, registration)
Staff Care- Expenses related to staff care (Food, travel, lodging, resources, registration)
Office Expenses- Rent, utilities, furniture etc.
Outside Services- Paying for security, legal counsel, accounting services etc.
COMMON EXPENSES OF STAFF: DETAILED
Some items can be reimbursed tax-free while others must be take as additional payrolls. All items are subject to approval and must be substantiated.
Airfare:
Launch to Ministry Assignment - The "Tax Cuts and Jobs Act" revoked employer's ability to reimburse employees for cost of relocating to their work location.
Disbursement: Request funds through an Additional Payroll Request Form. Please see the Additional Payroll Request Policy for further information.
Tax implication: Taxable
CMM Staff Conference - The CMM places a high value on getting staff families aligned on mission with God and our mission within the CMM. Families are expected to attend the CMM international staff conference, which has family programming for children. Therefore, their travel can be expensed pre-tax when traveling to our international staff conference.
Disbursement: Reimbursed via our expense reimbursement policy.
Children's flights are reimbursable
Tax implication: Non-Taxable
Mission Trips - For staff taking their children on cross-cultural ministry exposures such as summer projects or kids accompanying parents on other mission trips, these costs are justifiable ministry expenses that aid in the family’s World Christian development, directly benefiting the family’s long term stay on the field. Such ministry expenses must be preapproved by your team leader and reimbursable pre-tax.
Disbursement: Reimbursed via our expense reimbursement policy.
Tax implication: Non-Taxable
Any Other Travel - Work related travel includes ministry, fundraising, recruiting, and furlough. Spouses not employed by CMM are considered a volunteer aiding you in the ministry activities you are doing, thus their airfare may be expensed. If you need additional funds for your children’s airfare, please submit an “Additional Payroll Request” with the reasons for it, and it will be additional taxable income in your next payroll.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Tax implication: Taxable
Spousal & Children's Airfare - Unless otherwise noted above, Children's airfare is not reimbursable. If your spouse is an employee of CMM then their travel cost is subject to the same rules as above. If your spouse is not an employee of CMM, then their airfare may be reimbursed if they are legitimately aiding you in your CMM duties during your travel.
Housing Costs:
Rental Deposits - Rental deposits for apartments and homes are a normal occurrence, but some countries have higher deposits than the norm in the USA. Staff may request to pay the deposit out of his/her ministry account, these additional payrolls are subject to all applicable tax withholding.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Documentation: Lease agreement or receipt
Tax implication: Taxable
Rental Prepayments - Most international landlords require you to pay several months’ rent at a time. Normally, it is not more than 6 months and this amount should be raised in your launch funds and requested as an additional taxable payroll. If more than 6 month’s prepayment is required, please talk to the International Operations Director on how best to manage this.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Documentation: Lease agreement or receipt
Tax implication: Taxable
Housing Setup Expenses - Furnishing your home internationally can be a considerable expense. You should create a budget before you finish your pre-field support raising, so that you have funds available. CMM will provide a special payroll based upon your budget, and this is considered taxable income by the IRS. If you are a licensed minister, you should adjust your housing allowance in advance.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Documentation: None needed
Tax implication: Taxable
Security - The CMM may require staff to live places that require personal and home security, these type of security measures can be expensed from your ministry account pre-tax if receipts for actual expenses are submitted. Examples of qualified security expenses are the cost for security personnel, alarm systems, and security specific household improvements. Guard dogs cannot be expensed. Speak to your team leader to see if there is a team budget for security expenses.
Disbursement: Reimbursed via our expense reimbursement policy.
Tax implications: Non-Taxable
Temporary Housing - If you have temporary housing costs (less than 12 months) before your long-term residence is secured in your new ministry location, these housing costs may be expensed from your ministry account. Because your monthly salary includes a budgeted amount for housing, you may need to request your salary be adjusted during that time so. Please see our Payroll Change Policy for further information.
Disbursement:Reimbursed via our expense reimbursement policy.
Tax implications: Non-Taxable
Moving Expenses - The "Tax Cuts and Jobs Act" revoked employer's ability to reimburse employees for cost of relocating to their work location. Therefore, expenses related to moving to one’s ministry assignment are not reimbursable on a tax-free basis. This includes shipping containers, moving truck, airfare, mileage, storage for household goods etc.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Tax implication: Taxable
Other Expenses:
Automobiles - Staff are permitted to request an additional payroll to assist in paying for a vehicle.
Disbursement: Direct deposit to staff’s bank account
Tax Implication: Taxable
Children's Education - Children's education is personal in nature, and thus when the CMM give you a needs based provision for children's education, it is considered taxable income. If the cost for private education is excessive (greater than $6,000 per child), the excess may be considered a ministry expense and reimbursed pre-tax. The CMM has researched this issue, and the IRS states that the "value" of children's education received is taxable income. Since quality public education is available in the USA and average tuition at a private school is $6,000 in Fayetteville, AR, we have determined that education costs over $6,000 is excessive, a hardship expense based upon your work assignment, and the CMM considers this a business expense that should not be counted as personal taxable income. For college scholarship applications, the CMM would give the staff a letter outlining the various parts of their compensation, including base, living, and higher based upon their assignment – excess living expenses in the host location such as schools, cars, etc.
Disbursement: Staff request funds through an Additional Payroll Request Form. Please see our Additional Payroll Request Policy for further information.
Tax implication: Taxable up to $6,000 limit.
Adult Education - For adult education to be a business expense, an employee must be asked to pursue this particular education as a means to develop them to perform their current job better, to benefit the team in a particular way, or for a visa platform in creative access countries. Discussions should be had with the Team Leader and Field Director regarding what would qualify.
Disbursement: Reimbursed via our expense reimbursement policy.
Tax implication: Non-Taxable
Miscellaneous Items
Computers – If a computer is paid for through ones ministry account as a reimbursable ministry expense, then the computer is property of the CMM. If you leave staff before the computer is 3 years old and want to take it with you, then you must buy-out the remaining value of the computer.
Disbursement: Reimbursed via our expense reimbursement policy.
Tax implication: Non-Taxable
Cell Phones and Service – Most phones are used for both business and personal use. Staff may reimburse up to $500/staff/year for cell-phone and up to 50% of their portion of their monthly cellphone bill.
Disbursement: Reimbursed via our expense reimbursement policy.
Tax implication: Non-Taxable
Clothing - Not a ministry expense
Luggage – Not a ministry expense
Counseling Assistance
The CMM values the emotional and spiritual health of our staff. For that reason, we encourage all of our staff to seek out counseling or therapy if the need arises. To assist our staff in doing so, the CMM will cover up to $100 per immediate family member per year. To receive reimbursement either use your Expensify card or create a reimbursement through Expensify after you have paid.
For more information please contact Jamie Suel, Member Care Director, at [email protected].
ADOPTION EXPENSE POLICY
It is clear from scripture that God’s heart is near to the orphan. We encourage all of our staff to consider if adoption is right for their family. In an effort to assist in the process, we have developed this Adoption Assistance Plan.
Eligibility
All employees considered a “minister” for tax purposes are eligible for assistance.
Covered Adoptions
Adoptions of an “eligible child” both foreign and domestic are covered by this plan
In general, the term “eligible child” means any child below the age of 18 or who is physically or mentally unable to care for themselves.
Adoptions of a spouse’s child do not qualify for this benefit.
Qualified Adoption Expenses
Court costs,
Attorney's fees,
Traveling expenses, including the amount spent for lodging and meals, while away from home, and
Other expenses directly related to, and whose principal purpose is for, the legal adoption of an eligible child.
Limit
Staff may reimburse up to the limit set out by the IRS. For 2018 this limit is $13,810
The IRS has certain income limits of this benefit. It is up to the staff person to ensure they do not exceed these limits. Information on these limits can be found in IRS topic No. 607
Tax Implications
This benefit is excluded from wages subject to federal income taxes. However, they are not excluded from wages subject to Social Security & Medicare taxes.
Any reimbursement will be included in box 12 and labeled “T” on Form W-2.
We will not withhold Social Security & Medicare taxes for this benefit unless requested to do so.
Reimbursement Process
Any staff wanting to reimburse adoption expenses, should first email [email protected]
After eligibility is determined, expenses may be submitted for reimbursement via the normal expense reimbursement process. Use the expense "Adoption Expense Reimbursement".
If you would like to learn more about this option or have any questions, please contact the finance team at [email protected].
All staff are required to use Expensify to record and submit all reimbursable expenses.
*See article titled Expensify Tutorial for reporting standards*