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 Treasurers
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
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
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
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 Ontario N2J 0B4
J&D Benefits (Group Benefits)
Name: Linda Bissonnette
Phone: toll free at 1-800-218-7018 x2222 or 905-477-7088 x2222
J&D Benefits Inc.
8901 Woodbine Avenue, Suite 228
Markham, ON L3R 9Y4
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
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.
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
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.
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.
Charity Using Non-Qualified Donees As Intermediary To Conduct Activities
Canadian registered charities carrying out activities outside Canada
Transferring ownership of capital property to any non-qualified donee, including a local organization or government body, is not permitted. This is because land and buildings might be used for non-charitable purposes. However, transfers to non-qualified donees might be acceptable in the following three situations:
- The country in which the charity is operating does not permit foreign ownership of capital property
- The capital property is transferred only as part of a development project to relieve poverty by helping a community to become self-sufficient
- The charity can show that it has made every reasonable effort to gift the capital property to another qualified donee, and has made every reasonable effort to sell the capital property for its fair market value, but has not been successful
Using an intermediary to carry out a charity’s activities within Canada
In certain limited circumstances, the CRA may consider a charity to be carrying out its own activities by transferring certain resources to a non-qualified donee. The CRA will take into account all relevant circumstances when determining this, but at a minimum, the following three conditions must all apply:
- The nature of the property being transferred is such that it can reasonably be used only for charitable purposes (for example, medical supplies like antibiotics and instruments, which will likely only be used to treat the sick, or school supplies like textbooks, which will likely only be used to advance education); please note that transfers of money are not acceptable, and always require ongoing direction and control
- Both parties understand and agree the property is to be used only for the specified charitable activities
- Based on an investigation into the status and activities of the non-qualified donee receiving the property (including the outcome of any previous transfers by the charity), it is reasonable for the charity to have a strong expectation that the organization will use the property only for the intended charitable activities
Charities Education Program
The Canada Revenue Agency (CRA) has officially launched a new Charities Education Program to support charities in meeting their obligations. For more information about this program, see the new webpage: Charities Education Program.
Church Employers and Treasurers are reminded to contact J&D Benefits regarding: New employee plan enrolment; Salary changes; Billing statement inquiries; Members moving to another church; Benefit continuation during approved leaves; Terminations, Retirements, Member death etc.
Plan members should contact J&D Benefits regarding: enrolment into the “Choices” Flex Benefits Plan; status changes (adding a dependent etc.); completing the beneficiary information; replacement drug cards.
Contact person at J&D Benefits:
- Linda Bissonnette
Phone: 905-477-7088; Toll free: 1-800-218-7018
Changes to business numbers for all internal divisions
The 2014 Federal Budget provided the Charities Directorate with $23 million to modernize our IT systems over a five-year period. Improving these systems will allow charities to access services online that will help to reduce administrative burdens.
The Canada Revenue Agency’s (CRA) new online service will allow registered charities to:
- File their information returns
- Update and manage account information
- Check file status
- Receive and manage correspondence online
Charities will be able to access these services through the CRA’s My Business Account portal. The My BA requires each charity to have their own unique Business Number (BN) to access these services. As a result, new BN’s will be created and issued for all internal divisions that currently share a common BN with their head body. Letters will be automatically sent to each impacted charity, providing them with their new individual number and a Business Number Summary. This summary will show details about all CRA program accounts.
- Accessibility Standards for Customer Service Policy Statement Guide final Jan 2012
- Baptism and Church Membership
- Example Policy for Determining Church Members
- Guide to Child Safety
- Guide to Church Constitutions
- Guide to Church Incorporation
- Guide to Closing a Church
- Property Use Policy Sample
- Responsibilities of Church Trustees
- 2018 Monthly Church Contribution Form
- Avoiding Problems with Restricted Funds
- Charitable Activities Abroad
- Church Budget Preparation Checklist
- Church Treasurer Transition Checklist
- Donor Designated Gifts
- Guide for Raising and Disbursing Benevolent Support
- Guide for Writing an Investment Policy
- Guide to Completing the T3010
- Guide to Disbursement Quota Reform for Charities
- Guide to Financial Reporting for CNCA Church
- Guide to Ontario Not for Profit Corporations Act
- Guide to Tellers' Procedures
- HST for Churches
- Insurance Group Program for Churches
- Restricted Funds Breakdown
- Restricted Gifts
- Sample Donor Giving Policy
- Summary of Grants, Loans
- The Local Church Audit Guide