Managing Church Finances

Church treasurers have an important job in the operations of a church. From keeping the lights on, to payroll, to maintaining charitable status, to ensuring the offering is stewarded responsibly, treasurers’ tasks are critical to the well-being of a church. Not all churches have an accountant in their congregation who can perform these duties, meaning that there is a steep learning curve for many church treasurers. CBOQ equips treasurers with guides, workshops, information and consultation to help them be better stewards of the resources God has entrusted to them for the same of the Kingdom.

Mortgage Loans Now Available!

We are pleased to share some good news!

CBOQ now has funds available to provide our churches with mortgage loans to assist them with major building projects and renovations!

The mortgage application form can be found here.

Resources for Church Finances

New Treasurer Contact

When a new treasurer is appointed, please inform the following as soon as possible to update our contact records so that we can stay connected with you:

Sun Life Financial

New Treasurers

Contact Sun Life Financial and provide the name, email address, phone number and date the new Treasurer will assume the Treasurer position.

To Submit a contribution or for general plan inquires:

You can speak with a Sponsor Care Specialist at the Sponsor Care Centre any business day from 8 a.m. to 5 p.m. ET.

Sponsor Care Centre: 1-800-387-7262
Fax: 1-877-818-3143
Email: scc@sunlife.com

Plan Sponsor Services website: www.sunlife.ca/sponsor.

 To report Membership activity including new hires, Plan Members moving from one Employer to another, terminations, retirements, deaths:

Sponsor Care Centre: 1-800-387-7262
Email: grslc@sunlife.com

Please include your Client/Plan ID (S4D/02) in the subject line.

Sun Life Assurance Company of Canada

Group Retirement Services
227 King Street South
PO Box 2025 STN Waterloo
Waterloo, ON N2J 0B4

J&D Benefits

J&D Benefits (Group Benefits)

Name: Linda Bissonnette
Email: lbissonnette@jdbenefits.com
Phone: toll free at 1-800-218-7018  x2222 or 905-477-7088 x2222
Fax: 905-477-2249

J&D Benefits Inc.
8901 Woodbine Avenue, Suite 228
Markham, ON  L3R 9Y4

CBOQ

Spencer Lee
Accounting Manager
Phone: 416-620-2935
Email: slee@baptist.ca

TRANSITION CHECKLIST

To ensure a smooth transition, we have prepared a New Church Treasurer Transition Checklist Guide for you.

PENSION PLAN (SUN LIFE FINANCIAL)

All permanent employees who have a minimum of 700 working hours per year or minimum earnings of 35% of the CPP Maximum Pensionable Earnings are eligible to join the Plan. Employee contribution rates since 2007 are 6.00%.

For Pension Plan administration purposes, new treasurers should contact Sun Life Financial to obtain a new ID and security code to access the Sun Life Financial website for remitting pension contributions for employees.

Outgoing treasurers, please pass along the Treasurer’s Pension Plan Administration Binder to your successor when you leave the position.

GROUP BENEFITS (J&D BENEFITS)

CBOQ provides a group benefit plan and a defined contribution pension plan through our partnership with Canadian Baptist Ministries. Since these are both compulsory plans, churches are obligated to offer them to all employees that qualify. For Benefits Plan administration purposes, the new treasurer should contact J&D Benefits to:

  • Provide their new contact information
  • Be trained on procedures for:
    • Enrolment of new plan members
    • Updating changes for their plan members
    • Termination of plan members
  • Learn how to handle billing and premium payment issues

CHURCH CONTRIBUTIONS

CBOQ can only fulfill its mission of equipping churches and leaders through the contributions of our family of churches.

Through your church’s financial partnership, we are able to provide care and support for our pastors and leaders throughout their ministry, build the next generation of Canadian Baptists, strengthen our existing congregations and plant new expressions of faith.

YEAR-END DONATION RECEIPTING

Please be reminded that all donations to be receipted for 2018 must be received by December 31. This means the offerings and donations must be either in the offering plate on December 31, hand-delivered to the envelope secretary or postmarked by December 31. The CRA does not permit extension of the receipting year through to mid-January in the New Year.

For more information on receipting and other questions about operating a registered charity, click here.

T3010 Charity Return Filing Information

File a complete return each year, no later than six months after the end of your fiscal period. If you do not file your return within six months after the end of your fiscal period, your registration could be revoked for failure to file.

For more information on the T3010, click here.

TAXABLE BENEFITS – GROUP BENEFITS PLAN

For pastors and other staff members on the CBOQ group program, some of the premiums are taxable in both provinces. Generally speaking, group life insurance premiums and group AD&D insurance premiums are taxable benefits, which should be shown on the employee’s T4 report as indicated above. In Quebec, the other benefit premiums will need to be included on the provincial statement of remuneration. J&D Benefits will provide a Taxable Benefits report for each church with all employees listed for the year of 2018. Please use this report to complete the T4 for each staff. All of the benefits plan information, including claim forms, rates, and the complete “Choices” Flexible Benefits Plan booklet is available by clicking the button below; church treasurers can contact Spencer Lee at the CBOQ office to obtain a password to access the website.

YEAR-END PAYROLL INCOME TAX REPORTING

T4s, T5s, Year-End Clergy Residence Deduction (CRD) Form

As required by the CRA, T4 and T5 reports must be postmarked by February 28, 2019.

On the employee’s T4 report:

  • The taxable benefits amount provided by J&D Benefits regarding the Group Benefits plan should be included in box 14 (Employment Income), and the same amount should be stated in box 40 (Other Information).
  • The Canadian Baptist Pension Plan registration no. 0345769 should be stated in box 50.

Sample T4s for pastors are also posted on CBOQ website for your reference.

T1223 Clergy residence deduction

Please also remember to fill out a T1223 Clergy Residence Deduction form for your pastoral staff for them to claim the Clergy Residence Deduction. Click here to access the fillable form is available at the Government of Canada website.

Please note that the form requires church employers to provide the pastor’s job title, and attach a copy of his or her job description describing all of his or her duties. The description needs to indicate the percentage of time per week for each job function.

TIMING OF PENSION REMITTANCE TO SUN LIFE FINANCIAL

For January to November, contributions must be remitted to Sun Life Financial by the tenth of the month following the month in which the contribution was deducted. Please remit your December contributions before the end of December. This will allow the contributions relating to the current year’s salary to be allocated to the same year.

TAXABLE BENEFITS – BENEFITS PLAN

For 2018, please use the Group Basic Life and Dependent Life premium, plus the AD&D premium from the J&D 2018 January invoice as the monthly taxable amount for the monthly payroll calculation. For members enrolled in the Blue Leaf plan, the taxable benefit amount will be net of the employee portion paid. If you require more information, please contact J&D Benefits.

CBOQ GROUP BENEFITS ACTIVE PLAN

For 2018, the group benefit active plan premium is expected to have an overall premium rate increase of approximately 4.0%.

The Choices flexible benefit plan is a premium benefit plan for the Baptist Churches across Canada. Each year the program is reviewed to ensure it continues to provide employees with the opportunity to choose personalized benefit coverage that meets their specific needs, while remaining financially stable.

The plan operates on a break-even basis. There are no commissions or profits made on this plan. Every dollar contributed to this plan goes right back to plan members in benefit offerings. The committee that provides oversight to the Choices plan is reviewing the plan to ensure that the costs remain effective for our churches. They take this responsibility very seriously.

The plan, like many others, has experienced increased usage in all aspects of the plan. Many pastors are seeing firsthand the benefits of being members of this plan. Without this plan they would not be able to afford the health care needs they are facing. Thanks for your continued support and trust in your Choices Flexible benefit program.

MINIMUM WAGES INCREASE (ONTARIO)

The Government of Ontario has introduced legislation to increase Ontario’s general minimum wage.

Read more about Ontario’s new minimum wage standards.

T1213 REQUEST TO REDUCE TAX DEDUCTIONS AT SOURCE

For pastors who request a reduction in tax deductions at source through the payroll, please remind them to file the T1213 form with the Local Tax Service office in October or November to obtain CRA approval for the following income year. The T1213 form is available here.

Written approval from CRA will be sent to the pastor who should make a copy for their employer. Once this copy is received, the church can then reduce the pastor’s taxable income by the amount of the clergy residence deduction and withhold tax at source on the difference when processing payroll for the pastor. Learn more by reading the Guide to Pastor’s Payroll.

CPP RETIREMENT PENSION CHANGES

If your church has an employee who is 60 to 65 years of age and is receiving CPP retirement pension, both the employee and the employer are required to remit the CPP contributions. The CPP contribution is made toward the Post-Retirement Benefit (PRB) of the employee. Between the ages 65 to 70, the employee can either choose to continue CPP contribution or not. If the employee chooses not to continue, he or she should complete a form CPT30 and send the original form to CRA and make a copy for the employer. If the employee chooses to continue CPP contribution, the employer is required to contribute as well. Employees stop making CPP contributions toward their PRB when they reach the age of 70.

New This Year

  • The 2019 renewed premium for group benefits is 0%
  • CPP enhancement contribution rate increase per year, starting January 1, 2019
  • Official donation receipts must include the name and website address of the Canada Revenue Agency. The website address has changed to canada.ca/charities-giving. Charities and qualified donees have until March 31, 2019 to update their receipts.

Reminder!

  • Effective 2016, offering envelopes must be kept for six years from the end of the tax year.
  • CRA has already moved! CRA services and information are now at canada.ca
  • The Canada Revenue Agency (CRA) announced the public release of Charities IT Modernization Project (CHAMP), scheduled for November 2018, will be delayed until June 2019. Once in place, CHAMP will provide several new e-services, such as T2050 and T3010 filings. The mailing address for the Registered Charity Information Return (T3010) will be changing on October 8, 2018.

The new address is:

Charities Directorate
Canada Revenue Agency
105 – 275 Pope Road
Summerside PE C1N 6E8

Please note that this change applies only to the annual return.

All other correspondence should be sent to:

Charities Directorate
Canada Revenue Agency
Ottawa ON  K1A 0L5

We ask that you mail your returns to the new address if you are filing the T3010 on or after October 8th. Before this date, all returns should be directed to the Ottawa address.

Important Dates for 2019

January 1-6

Last week to submit your year-end church contributions! (Cheques must be dated Dec.31, 2018 or earlier)

February 28

Due date for:

  • T4s and T5s
  • Clergy Residence Deduction Form
  • Property Tax Rebate
  • Donation Receipts
March 31

Official donation receipts must include the name and website address of the Canada Revenue Agency. The website address has changed to canada.ca/charities-giving. Charities and qualified donees have until March 31, 2019 to update their receipts.

April 30

Income tax filing due date!

May 8

Pre-Retirement Workshop

June 1
  • T3010, Registered Charity Information Return
    • Starting in June 2019, registered charities and their representatives will be able to complete and file Form T3010, Registered Charity Information Return online. To learn more about these service improvements and how you can prepare for them, go to Charities IT Modernization Project (CHAMP).
  • Charities IT Modernization Project (CHAMP)
    • To reduce the administrative burden on charities, the Canada Revenue Agency (CRA) is modernizing its Information Technology (IT) systems to provide new online service options.
June 30

Year-end registered charity annual information return (T3010-1 E) due for Dec. 31

October 1

Oct/Nov – Request to Reduce Tax Deductions at Source (T1213) is due for pastors

December 30

Year-end donation receipting for 2019 due(last Sunday of year 2019)

December 31

Individual donation for 2019 must be postmarked no later than today!

CERTIFICATE LOAN

CBOQ’s Certificate Loan program provides a unique, practical opportunity to extend the kingdom of God in our member churches. Instead of leaving your investment with a bank or credit union, you can directly invest with CBOQ and support member churches that have a need for a mortgage for church renovation or church construction.

Find out more about Certificate Loans!