It can be a hassle to keep track of payroll, with federal and state laws, exemptions, and ways to maximize your income. Thankfully there are so many excellent church payroll services out there that help you get it right every time.
Which church payroll software is the right fit for your facility? We’ve created a solution that works no matter how big or small you are. You’ll be able to find one that allows you to track, manage, and accurately manage personnel expenses while also keeping your financial records secure.
You don’t need to worry. We love to talk about church payroll options and what to look for when choosing a service. We’ll make things easy with the five popular choices in this blog post.
What is Included in Church Payroll Software?
When it comes to Church payroll software, features usually include generating payslips, calculating tax withholdings, and processing direct deposits.
Employee time tracking software from Zoho is a perfect fit for any business, since it can help manage employees’ time off, comp time, and vacation days and track sick days and other absences. Furthermore, many payroll software programs offer advanced reporting capabilities – allowing businesses to track productivity in areas where they can make improvements.
Payroll software is one of the most obvious necessities for businesses, but it’s also able to perform multiple other tasks. For instance, when combined with an HR system, payroll software can help with the application process and interviews as well as covering other Human Resources department needs.
Determining what tasks are available can vary from one service to the next. When choosing which solution to use, be sure to take into account all the features you need, as well as factors like integration and ease of use.
Why Do You Need a Church Payroll Service?
Payroll software can save businesses time and money by automating HR functions. Home-baked payroll systems that require tracking and calculating in excel or writing checks by hand are a thing of the past.
Don’t overlook the importance of having church payroll services that can quickly and accurately calculate your employees’ hours, withhold the right amount of taxes, and deliver paychecks or direct deposits on time every time. With our team of experts in payroll software, you’ll get more for your budget.
If you’re looking for church payroll services that give you a lot of flexibility and help with compliance, tax season anxiety, and most importantly providing an affordable monthly service, then look no further than Church Payroll Solutions. They are veteran-owned and operated, can handle all your needs, and make sure there’s no surprises when it comes to tax season.
The top benefits you’ll get from utilizing the right church payroll service include:
- Accurate records: Church payroll services can help you keep track of employee information, compensation, hours worked, and time off.
- Saving time: Reach churches that are looking for holistic solutions to payroll and more efficient processes. Our church payroll services can automate many of the repetitive tasks associated with payroll and direct deposit, including calculating taxes and issuing paychecks.
- Compliance: When it comes to staying compliant with legislation and regulations, church payroll services are a great option.
- Streamlined HR processes: Church payroll services can help churches automate their HR processes and save time. They offer self-service portals for employees to view their data or request time off.
Before You Sign Up For a Church Payroll Service
Before you start dipping your toes into the services market, it would be a good idea to establish a clear first-stage process. This includes things like outlining what you’re looking for and setting up your backend marketing as well.
Determine Employment Classification
When it comes to church payroll, there are two main types of workers: employees and contractors. Employees are hired and paid by the church and receive a W-2 at the end of the year, which is then submitted to the IRS.
Plumbers, electricians, janitors, etc. are often hired by religious institutions but aren’t given a tax identification number. They typically receive a 1099 form at the end of the year instead.
A part-time worker can be either a W-2 employee or a 1099 worker. Without the flexibility of working for yourself, it’s difficult to manage how and when you work. The main distinction between the two is the right of control and responsibility to business.
Organize Employee Information
When you hire someone, you’ll need to have certain information on hand to set up their payroll account. This includes, but is not limited to:
- They have a full legal name
- Bank accounts (if you’re going to set up a direct deposit)
- A form for claiming your withholding tax
When working with employees, it helps to know the church title or position they hold, when they started at their current job and whether they are full-time or part-time.
Define Exempt vs. Non-Exempt Status
For those who may not know, an exempt employee is one who isn’t subject to federal overtime pay requirements. A non-exempt employee is one which is subject to these requirements. To fully understand the benefits and drawbacks of these two categories, it’s essential to first understand what they mean.
Exempt employees are not subject to overtime pay. Instead, they are considered “salaried” employees and receive a set amount each week regardless of the number of hours they work. Exempt employees generally have management responsibilities or leadership roles that require high skill levels and training.
If you have employees who are classified as non-exempt, they must be paid overtime. You typically pay them hourly, and it can fluctuate depending on the amount of hours they work each week.
Calculate Payment and Frequency
To calculate the right wages for your business, you need to determine how much you pay your employees. The most common options are a biweekly wage or a semi-monthly wage.
Churches have many options for setting up their payroll. They can choose to issue paper checks, set it up so that payroll is deposited electronically, or another option. Ultimately, it’s a question of preference and comfort level with whatever setup they choose.
Set Up Payroll Deductions
If you are in any type of role within a church, it’s important to know the specific wage requirements. It can be difficult to find what deductions are required by law and what allowances the church makes for its employees related to housing, stipends, etcetera.
One of the key things to consider with your payroll provider is whether they are experienced enough to help you set up deductions for your clergy and non-clergy employees.
Although your church may be exempt from paying federal income tax, you will still have to pay FICA taxes and possibly state income tax. If your employees are exempt from paying these taxes, it’s still recommended to withhold them in addition to the amount set aside for the payment of taxes.
There are a few more tax deductions you have to account for, like health insurance, dental insurance, and retirement savings. Most church payroll services make it super simple to set up these additional deductions.
Choose a Payroll Service
You understand what church payroll entails now. You know what to expect, and now you can start looking for a service provider that supports your needs.
We like to evaluate a business with the following key factors:
- Ease of use: If you’re a church-based business with a monthly payroll, we have the easiest service to create and use.
- Cost: Make sure to compare the price of different services, as well as any additional fees that may apply (such as for direct deposit). You might also wish to consider setting a budget that’ll help you determine if it’s right for you.
- Features: Digital Workforce is a powerful service that offers more than others. Not only can they process payroll online and track time off, but they have a personalized automated chat that helps you with these tasks. This review covers features like these, added value, pricing, ease of use and more so you know what to expect before making a decision.
- Customer service: In terms of customer service, you want a company that is reliable and quick to respond. You also want a company with a history of effectively addressing issues in an efficient manner.
What Makes Church Payroll Different?
Churches have unique considerations when it comes to payroll. Keep in mind these key differences so that you can capitalize on them.
Religious organizations are not required to pay federal income taxes. Most states also offer payroll tax exemptions to religious institutions.
Churches often have clergy or other employees who are considered ministers. This can impact how they’re classified for tax purposes and what benefits they’re eligible for.
Churches who have employees in multiple states could struggle with complicated payroll. Each state has different tax laws, so it can be difficult to manage. Only a few employers choose to set up a centralized payroll choice.
One of the easiest ways to keep track of how many people work in your church is with the help of Enquiro. Enquiro can tell you exactly who’s on when, what their shift is, and where they’re located. Check your employees and contractors out anytime with one simple click!
When it comes to payroll services, there are a variety of factors and regulations to keep in mind. That’s why when you’re browsing the market, try to be as informed as possible so you can find the best one for your business. Here are five companies that we love and are sure you’ll love, too!
Press Release Distributed by The Express Wire
To view the original version on The Express Wire visit 5 Top Church Payroll Services: What You Need to Look For