Accountant for Churches Accounting for Church

But paying people—including ministers, part-time staff, and contractors—has to happen. Our team of dedicated church payroll specialists is here to assist with your payroll and HR needs. Church payroll has unique laws, benefits, and exemptions, it is different from traditional and corporate payroll.

Is Your Church Financially Healthy?

Paystubs are available to employees via an online portal, that allows employees access to their payroll information, from anywhere, anytime. In this same portal, employees can make changes to their personal information, direct deposit information, etc. Third, churches often issue housing allowances to people who don’t meet the IRS’s definition of ministers.

Accounting

• She also assists with improving accounting software and digital workflows.
• Now that you understand what church payroll entails, you can start shopping around for a service that meets your needs.
• Getting church payroll right protects your ministry from costly IRS penalties while keeping your staff happy and properly compensated.
• If you’re not reviewing that amount yearly, your pastors may be missing out on tax benefits.
• Manage flat-rate musicians, dual-status clergy, hourly staff, and volunteers.
• Gusto supports unlimited pay runs and automated taxes and forms.

Questions such as “Do you understand Accounts Payable Management the church payroll and clergy tax law? First, we have years of experience working with church payroll, so you can have complete confidence in your payroll accuracy. We know all the special regulations and exemptions that apply to churches and pastors, so you’re not filing or paying unnecessary taxes. We handle all the required IRS and state report payments and filings for you, so you’ll never worry about missing a due date. SurePayroll features a payroll plan that excludes tax-filing services.

• All organizations and businesses, including churches, need to file 1099s to inform the IRS about the income showing on the recipients’ income tax returns.
• We customize the payroll process for each client to ensure the best fit – your needs are important to us, and church payroll services should become an easier task with our help.
• Another wrinkle is that Pastors don’t have to pay federal income tax on their housing allowance.
• Client Access allows our clients to work in the payroll software, giving them control over all aspects of their payroll.
• A person who works on a construction project at your church, and does construction projects for several other organizations for pay, is probably an independent contractor.

Meet the Team

Customizable user fields on employees to track HR documents, pay increases, scanned drivers licenses, and more. Comprehensive year-end resources and training make payroll easy. Church HR Support Online Church HR Support Online is a web-based HR resource that will assist you with a very critical aspect of your organization – your people. The objective of Church HR Support Online is to help you become more successful by providing easily accessible solutions to your largest HR challenges.

• Plus, you’ll get help with tax calculations, tax laws, and any other issues you may have when running payroll.
• Ministry Accounting fees vary based upon the amount of church activity, the number of employees and the optional services you select.
• Employees can print their pay stubs directly from their personal online payroll account.
• To sum it up, church payroll services can be a bit different than regular business payroll, due to tax exemptions and other factors.

Direct Deposit for Your Staff & Employees

• Our onboarding process includes a cleanup specialist (if needed), an IT support person to help with logins and systems, and a detailed review before we begin monthly work.
• Congress has placed numerous restrictions on the IRS’s auditing of churches.
• Learn best practices on hiring and termination, and stay on top of state and federal wage and overtime laws and requirements.
• Sure, they can process paychecks and file tax forms—but ministry payroll requires more than that.
• Keeping your payroll in order can be very challenging depending on the number of your staff and their individual needs.

Together, we can explore the various options available depending on your church’s size, staff capabilities, and other needs. If you want a formula, the full-time equivalent (FTE) is a better indicator of your hiring needs. This consists of adding Online Accounting up all of the work hours of your paid staff (including part-time employees) and then dividing the total by 40. Just because you have the infrastructure to hire someone and handle their paperwork and compensation doesn’t mean you should sign someone on every time there’s an opportunity. It may be a non-profit that isn’t focused on things like revenue growth and profitability, but it still has limited resources.

When discussing church payroll, it’s easy to get caught up in the government and reporting church payroll side of the equation. This means that they are considered an employee of the church when it comes to income taxes, but they’re also considered self-employed when it comes to Social Security. Dual tax status for ministers is one of the most confusing aspects of church payroll.

Categorised in: Bookkeeping

This post was written by admingal