And we know first-hand what it takes to create an effective digital marketing strategy for churches. Our goal is to help churches Bookkeeping for Startups like yours reach more people and grow. This company is based out of Arlington, Texas, and touts over 20 years of experience in all 50 states. They specialize in small to medium-sized organizations, so this payroll service is worth checking out if you’re a smaller church.
Uplifting Faith-Based Organizations with Robust Tools
Plus, you’ll get help with tax calculations, tax laws, and any other issues you may have when running payroll. The clergy housing allowance is one of the most valuable tax benefits available to ministers—but it’s also one of the most misunderstood. The ministerial exemption is a legal doctrine that protects a church’s right to make employment decisions about its ministers without government interference.
Confidence you’re compliant
MinistryWorks includes ACA reporting features, an important aspect for churches that provide health benefits to their staff. It’s important to consider whether the software offers scalability for future growth or additional church locations. Some payroll platforms also provide optional add-ons such as HR tools, time tracking, and benefits management, which may prove valuable as the ministry expands. Free trials or demos can help church administrators test software usability and ensure it integrates well with existing financial systems. Getting feedback from staff who will use the software daily is also recommended.
Housing Allowance Management and Reporting
Even without the discount, their pricing ranges from $13 a month to $70 a month. With the right software, churches can also get a sense of where their fundraising is and how to improve it. If donations lag in one quarter, a church can make an educated decision about hosting a fundraising event, increasing calls to action during services, or getting more creative with its fundraising strategy. Starting at just $49, plus $6/employee per month, you’ll get access to OnPay’s award-winning payroll.
- Payroll is a very important aspect of every church, so choosing the best payroll services is imperative.
- Paystubs are available to employees via an online portal, that allows employees access to their payroll information, from anywhere, anytime.
- Our clients rely on our knowledge and expertise, giving them peace of mind that employees and taxes will be paid accurately and on time.
- ChurchTrac is a great online church management software for churches of all sizes.
- You can even assign designated users to process payroll for leadership staff while another HR user handles payroll for other employees.
- Ministers need special pay setup and accurate allocation to match their tax status.
We will invoice you in the month following the service month after all reports have been prepared. Reporting tools provide executive management with clear visibility into labor hours, helping them anticipate staffing needs and ensure clients always receive the care they deserve. Our insurance professionals are trained to maximize your employees’ coverage while safeguarding your bottom line. 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. Instead, they are considered “salaried” employees and are typically paid a set amount each week, regardless of the number of hours they work. Exempt employees generally are in management roles or positions that require a high level of skill and training.
Yes, we offer several convenient add-on services to complement our core church bookkeeping. With automated wage calculation, the system pulls data from hours worked, attendance, bonuses, and overtime, eliminating manual errors and guesswork. Easily handle deductions, adjustments, and housing allowances bookkeeping with built-in tools that account for clergy-specific tax rules. Each pay cycle ends with a professionally formatted payslip, giving your staff and ministers a clear, accurate breakdown of earnings and deductions.
NONPROFIT AND 501(c)( PAYROLL
Integrating benefits tracking with payroll processing minimizes mismatches between salary data and benefits records. This accuracy is essential for proper tax reporting and avoiding employee disputes. Church payroll is complicated by several unique factors that set it apart from typical business payroll.
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. Rippling is among the best church payroll services for churches that want to automate their payroll, IT, and HR tasks.
Best for Church-Specific Features
- Take the burden off of your financial staff, and let us manage your church’s bookkeeping and payroll.
- PowerChurch offers full-featured accounting software with general ledger, bill pay, income management, payroll processing tax management, donor pledge and giving management, statement generation and printing capabilities.
- Church management and expense tracking are vital roles that may get overlooked.
- Our payroll software helps you keep detailed, centralized profiles for everyone on your team, from banking details and housing allowances to salary breakdowns and clergy-specific tax notes.
- Selecting payroll software that meets a church’s unique needs involves balancing features, ease of use, customer support, and cost.
- With a blend of creativity, strategy, and data-driven insights, we create content that not only engages but also elevates digital experiences.
User feedback often highlights SurePayroll’s straightforward interface and helpful customer service. The platform integrates with many third-party applications, expanding its utility for churches that already use other software for bookkeeping or donor management. The greatest challenge for the church in selecting a payroll company is finding someone who is truly qualified in clergy tax law and church payroll. Knowledge and experience is critical and ministry leaders must understand these challenges and recognize the need for industry specialists. While regular volunteers are typically not paid, stipends for guest speakers, mission workers, or honorariums for services rendered are often considered taxable income and must be accounted for. The church may need to issue a Form 1099-NEC if the payment meets a certain dollar threshold, so your payroll software needs to handle both W-2 and best payroll service for churches 1099-NEC filings.