Ep 57 ~ Unraveling the Mystery of Church Employees and Overtime Rules

The Church Finance & Minister Tax Podcast- Church finances, Minister Taxes, Minister payroll, IRS Compliance

Introduction:

• Welcome to episode 57 of the Bookkeeping with a Purpose podcast!
• Exploring the complexities of federal regulations, particularly regarding church employees and overtime rules.
• I stumbled upon something fascinating recently, and you know me, I can’t keep cool discoveries to myself. So, buckle up for a journey into the world of church finance regulations!
• Federal regulations often lack clarity, especially when it comes to topics like church employees and overtime rules.
• Sparked by a question about a past episode I recorded on church employees and overtime rules, recent research uncovered new insights, prompting a deeper dive into the subject. Spoiler alert: it’s not as straightforward as it seems.

Segment 1: Quote of the Day

• Drawing inspiration from Greek philosopher Aristotle: “We are what we repeatedly do. Excellence then, is not an act, but a habit.”

Segment 2: Understanding Fact Sheet #14A

• Exploring Fact Sheet #14A from the Wage & Hour Division of the US Department of Labor.
• Highlighting protections offered by the Fair Labor Standards Act (FLSA), including minimum wage, overtime regulations, record-keeping requirements, and child labor standards.

Segment 3: Coverage Criteria

• Diving into two key ways employees are covered under the FLSA.
  • Enterprise Coverage: Employees of businesses generating at least $500,000 in annual sales revenue, with exceptions for non-profit organizations unless engaged in qualifying commercial activities.
  • Individual Coverage: Employees engaged in interstate commerce or closely-related processes essential to such production.

Segment 4: Application to Church Employees

• Demonstrating how church employees may fall under FLSA protections, particularly through involvement in interstate commerce-related activities.
• Debunking common misconceptions and emphasizing compliance with overtime regulations, minimum wage rules, record-keeping requirements, and child labor standards.

Segment 5: Volunteer Guidelines

• Clarifying volunteer regulations outlined in Fact Sheet #14A:
  • Restrictions on volunteering in commercial activities.
  • Prohibitions against displacing paid employees with volunteers.
  • Limitations on paid employees volunteering for similar services performed in their job roles.

Episode Support Links

Fact Sheet #14A: Non-Profit Organizations and the Fair Labor Standards Act (FLSA)

xo, Michelle Next Steps: Grab Your Freebies: 6 Step Process to Doing Business God's Way biz owners FREE QuickStart Guide to Church Finances everybody

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