Church Payroll Made Simple: Software & Expert Help

09 Apr Church Payroll Made Simple: Software & Expert Help

You’ll also need to decide whether you want to issue paper checks or set up direct deposit. Obviously, payroll software is essential for keeping track of employee compensation, but the benefits go above and beyond sending paychecks. For example, when integrated with other HR systems, church payroll software can help to streamline the application, interview, and hiring process and cover additional Human Resources department best payroll service for churches needs. Regardless of the size of your organization, our services can be tailored to meet your needs and budget. We are a complete outsourced solution and endeavor to ensure that the benefits we provide our clients always outweigh the costs.

• Our goal is to give you confidence and peace of mind, knowing that the support you receive reflects our unwavering commitment to excellence.
• And because we also specialize in tax planning, we can parlay our efforts into maximizing health savings accounts, pursuing high deductible health plans, and utilizing accountable reimbursement plans.
• If your primary concern is having a specialist looking over your shoulder to ensure every single nuance of ministry tax law is followed, MinistryWorks is the way to go.
• It was built with features that support clergy-specific tax rules and housing allowances out of the box.
• Whether you’re a church admin, treasurer, or pastor, understanding the basics can save you from stress, and costly mistakes.
• The most affordable plan may not include all the features your church needs.

Best for Easy Restricted Fund Management

Realm offers 30 customizable church- and ministry-specific report templates. You can save predefined church reports in the Realm ministry management software, then customize them and save them for reuse. Finally, Realm’s church accounting and payroll reporting software allows churches to select standard accounting reports, then customize them based on time periods, Suspense Account funds, core accounts and departments. You’re dealing with things no regular business has to worry about, like the dual tax status of ministers, housing allowance exclusions, and keeping your tax-exempt status safe. Choosing the wrong system can lead to serious IRS penalties for the church and the church leaders—we’ve seen cases where organizations owed hundreds of thousands in unpaid payroll taxes, plus penalties and interest.

Best for Award-Winning Customer Support

• This includes new hire reporting, workers’ compensation reporting, voluntary state unemployment, and other similar needs.
• From this tracking, we will prepare quarterly contribution statements for donor review and verification.
• Our financial experts provide financial analysis and support so you can make strategic decisions and steward God’s provision while staying focused on the mission.
• FreshBooks’ award-winning customer support means you never struggle to get assistance.
• Church payroll can be complicated because of the unique tax status of churches and clergy.

Experts help you avoid penalties by getting it right the first time. Even with great software, church payroll isn’t always plug-and-play. It was built with features that support assets = liabilities + equity clergy-specific tax rules and housing allowances out of the box. Traditional payroll systems often don’t accommodate these nuances, which is why so many churches are turning to specialized providers and experts to handle their unique needs. Many churches also offer a housing allowance, which is tax-free if properly designated and documented.

Simplify Payroll and Taxes

The next step is to determine how much and how often you will be paying your employees. The most common options are biweekly (every other week) or semi-monthly (twice a month). We use QuickBooks Online to manage transactions and data seamlessly across your financial accounts, allowing you to choose the giving platforms that work best for your ministry.

• Our goal is to develop long-term personal relationships with our clients, make sure we understand their specific tax issues, and assist with tax planning so they are well-positioned for the future.
• We will provide full-service payroll for all full-time and part-time employees.
• You can also track donations on giving dashboards, enter and manage donor pledges and manage restricted funds.
• Clergy employees are different because of their dual tax status (SECA vs. FICA taxes).
• Large payroll companies may be great with payrolls of large secular businesses.

If you are any other type of religious organization and want to be tax exempt, you’ll need to apply to the IRS for the status using Form 1023 unless your gross receipts don’t exceed $5,000 annually. When it comes to setting up payroll for your church or religious organization, you’ll basically follow the same 5 steps as any other entity would take. Finally, decide whether this software is the right fit for your church long term.

Most nonprofits can exempt themselves from FUTA (Federal Unemployment Taxes). It is a common misconception that nonprofits are exempt from the State Employment taxes (SUTA). Most states require nonprofits to choose between registering as a contribution or reimbursement-based account.