Parish Accounting Newsletter
Quarter Three, 2018
Meet Angela Chen, Parish Accountant
Angela started with Trust Management back in September 2015 when Trust Management took over the accounting for our first Ministry Units. She worked with the treasurers to design their chart of accounts and new monthly reporting. It was a very busy time and Angela forged long lasting relationships with these Parishes, which were very keen to be early adopters of Parish Accounting.
After a year working with her Parishes within the Parish Accounting team, Angela went on maternity leave and had little George. She took a year off to spend time looking after George but also helped us during that time to provide cover when other Parish Accountants went on leave. Angela continued to study for her Chartered Accountancy exams during her maternity leave.
These days, Angela has a very busy life, working full time providing accounting services to 16 parishes, studying for her last two CA exams and looking after her family. She is definitely an expert of all matters related to Parish Accounting in the team.
She still finds time to practice her Zumba moves and loves shopping online looking for the latest stylish bargains.
Honoraria, Payments to Cleaners, Gardeners and Volunteers
The IRD has issued some recent clear guidance in respect of honoraria, koha and payment to volunteers. We have raised with some of our Ministry Units the tax treatment of payments the Ministry Unit has made to volunteers such as retired priests or parishioners.
What is the Definition of a Volunteer?
For these payments, a volunteer is defined as a person who freely undertakes an activity in New
that is chosen either by themselves or by a group they are a member of, and
that provides a benefit to a community or another person, and
there is no purpose or intention of private financial profit for the person.
Payments to Volunteers and Koha/Honorarium
Volunteers may be either:
reimbursed for any expenses they have from their voluntary activities, or
receive an honorarium for their services
Volunteers often incur expenditure associated with their voluntary activities. This could be from the activity itself or their travel to or from the activity. Reimbursement payments are treated as tax-exempt income for the individual if they are based on:
actual expenditure, or
a reasonable estimate of the likely cost, where an organisation;
reimburses for the expense before the activity, or
when the actual expenditure can't be determined and the reimbursement is based on a reasonable estimate of the likely cost.
Honoraria are payments made for services provided where no fixed payment would normally be made.
If you are paying honoraria to:
an employee, the payment must be included in the payroll and PAYE charged.
someone who is not an employee, the payment is taxed at a flat rate.