Our team upholds the highest ethical standards to keep your organization fully compliant. Beth supports the leadership team by managing communications, scheduling, and operations. She holds a Bachelors Degree in English from the University of Tennessee, Knoxville, and a Masters Degree in Education from Tennessee Technological University.

• The software integrates with the nonprofit accounting software program Aplos, which tracks payroll automatically for nonprofit organizations and churches.
• Manystates also grant exemption to churches from state unemployment taxes.
• Our HR services are best described as Administrative Support Services, designed to come alongside the church and help streamline the church’s HR practices.
• If your church pays musicians to perform during services or other events, you’ll need to determine if they are employees or independent contractors.
• Once you’ve established your infrastructure, you’re ready to hire more employees.
• Church payroll gets more complex as your ministry grows, but it doesn’t have to become overwhelming.

Church Payroll Can Be Confusing

The software program can quickly adapt to any business, including nonprofits and churches. These employees are eligible for minimum wage and overtime pay, and require accurate tracking of hours worked. Getting this wrong doesn’t just affect payroll taxes—it can lead to lawsuits, penalties, and costly back pay. At ChurchShield, we strive to be a valuable asset for your church and want to help alleviate the stress that comes with ongoing payroll processing and compliance. That way, you can continue to do what you do best, which is address the needs of your congregation.

Accounting services from

We treat every client cash flow as a valued partner and are committed to providing close, personalized attention. Our goal is to give you confidence and peace of mind, knowing that the support you receive reflects our unwavering commitment to excellence. Obtain accurate results but also comply with federal and state laws governing background checks used for employment.

Does a church have to file a Form 941?

There are an estimated 380,000 churches in the US plus over 80,000 religious charities and nonprofits. If you’re one of these organizations, then you have some Online Bookkeeping unique considerations when it comes to payroll for church employees. While there are many similarities with payroll for for-profit organizations, your church or other religious entity may have to follow different rules and regulations, which can get complicated.

• Expenses for health care, soul care, massages, restorative trips, and sabbaticals are taxable fringe benefits you need to capture as income.
• That means giving instruction and providing the tools, training, and equipment to complete the work.
• Robust reporting of payroll, employees, deductions, and more.
• Christian CPAs are much easier to work with in a ministry setting.

• Find out the value and benefits of outsourcing your church payroll.
• WatersEdge Ministry Accounting services are designed to lift a burden off church leaders’ shoulders.
• Even if the FLSA applies under the individual coverage test, employees may be exempt because the law excludes most executive, administration, and professional workers.
• Employersmust have a completed Form I-9 on file for each person on their payrollwho is required to complete the form.
• Whether you need help creating a payroll plan, entering employee information, or handling workers’ compensation, payroll software for churches can handle it all.

MinistryWorks is one of the most popular church payroll services for ministries that need a separate payroll specialist only working with churches. This church payroll software is made for ministry and clergy tax law. It can run payroll, pay employees using direct deposits and checks, and handle federal, state, and local taxes. However, a closer look at the effort, cost, liabilities, education, and ongoing training reveals some potential challenges.

For instance, the ongoing push for a non-itemized charitable deduction is a development that churches can take advantage of if it passes. Once you’ve created a clear job description, found an ideal candidate, and collected the necessary information during their onboarding, you can get your payroll into a normal cycle. Establishing these details upfront is helpful in ensuring that everyone is on the same page as each new employee settles in and begins contributing to your church. The biggest question to answer right out of the gate is whether pastors are employees or not — and the answer is a little confusing.

Why Religious Organizations Use Paylocity

You’ll get accurate books, clear reports, and ongoing support church payroll from a team that knows ministry. Payroll software is enough support to solve the problem in some scenarios. It can create an infrastructure that is easier to manage, and forward-thinking software solutions can make certain tasks simpler. When you’re working with volunteers, it’s easy for everyone to wear a lot of hats. You can have unpaid workers shift from one job or responsibility to the next without thinking it through too much. As a church, your team will likely pour a lot of their mental, physical, emotional, and spiritual energy into your activities.

Clarify Clergy Payroll Questions

This can be a lot of paperwork, and this is why efficient payroll for religious organizations is so important. While church payroll may have many similarities to general business payroll, there are a few key differences to keep in mind. Our one-of-a-kind platform keeps employees connected to employers and to peers. Realm’s tools allow staff to manage the church and run your ministries, and Payroll gives you a way to manage all those staff positions quicker and easier.