June 2017 Newsletter
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Pacific Justice Inst.
Justice Institute

"Defending Religious Freedom, Parental Rights, and Other Civil Liberties Without Charge"
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David C Cook

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From the President
With the official start of summer just a few days away, I'm sure most of you are thinking more of summer ministries and vacations than anything else. But summer can also be a time when things around the office slow down a bit, giving you some time to catch up on things you may have be putting off. This month's articles will help keep you informed on important issues and give you some resources to explore as you are so inclined.

Yours in His Service,

Steve Boersma
When is a Church a Church in the Eyes of the Internal Revenue Service?
To be tax-exempt under the Internal Revenue Code, an organization must be organized and operated exclusively for exempt purposes set forth in section 501(c)(3), and none of its earnings may inure to any private shareholder or individual. In addition, it may not be an action organization, (i.e., it may not attempt to influence legislation as a substantial part of its activities and it may not participate in any campaign activity for or against political candidates). ( read more)
Update on California's Proposed Plan to Set Up a State-Run Pension Plan

A few months back it was mentioned at one of our seminars that California was preparing to launch a state-run retirement program that calls for the automatic enrollment of private sector employees into a state-run pension plan.  Though there is an opt-out provision for employers who offer a private retirement plan option for their employees, employers who choose not to do so will be required under the law to enroll their employees in the state-run plan. There is no exemption for church and religious organizations.  ( read more )
Tax Information for Charitable Organizations
Looking for resources to help you better understand tax and compliance related issues applicable to your ministry? Here are a few links to useful sites as published by the IRS. Of course, if you would rather speak directly to someone who can answer your questions feel free to contact our office for assistance. Better yet, take advantage of our e-consulting services which allows you to get advice from industry experts via a simple email.

Exemption Requirements - 501(c)(3) Organizations  A brief description of the requirements for exemption under IRC Section 501(c)(3). (read more)
Employment Law Corner
Compensatory Time Off
Some employers continue to adopt policies giving their  employees  compensatory time off (an hour off at some later date for every extra hour worked) instead of paying them overtime. This practice is illegal under federal law and most state laws because it prevents employees from collecting an overtime premium for working more than a set number of hours.  This means that if you choose to give your employees time off instead of money for extra hours worked you expose yourself to legal challenges and potentially significant financial consequences if found to be violation of the law.

So, what are the alternatives to simply paying the employee overtime? There are not many, but here are a few ideas: (read more)