When it comes to very low value and potentially high risk business activities, doing your own payroll ranks right near the top. Sixty percent of the W2 forms completed by churches are issued in error. Twenty percent of churches pay an average penalty of $845 per year for late or incorrect payroll filings. Many churches outsource their payroll and related tax duties (i.e., withholding, reporting, and paying social security, Medicare, and income taxes). Clergy Financial Resources can help assure filing deadlines and deposit requirements are met and guarantee tax compliance which will greatly streamline church business operations. Let us take care of coordinating and processing payroll for your church while you use your time for other ministry needs. Some of the services and benefits we provide are:
- General payroll processing
- Administering payroll and employment taxes on behalf of the church.
- Reporting, collecting and depositing employment taxes with state and federal authorities.
- Free direct deposit
- File federal and state payroll reports
- Reconcile year-to-date payroll
- Online payroll system with real time reporting
- Free W2 reporting
- Tax and payroll Support (Included at no additional cost)
- Fixed monthly pricing plan with 12 month guarantee
- Unparalleled church and clergy tax experts
- Single point support
Your choice of a payroll solution will depend on a lot of things, including how many employees you have, how complex your withholdings are, how willing your designated payroll person is, and how much control you want over your payroll. Church Payroll Solutions is a great value with a new fixed pricing and guarantee structure for churches of all sizes. We’ve bundled everything you need into a single, all-inclusive, and competitive price – no additional or hidden add-on charges. We make payroll easy. We’re dedicated to providing you with accurate and timely payrolls, with no hassle. Free Payroll Quote Churches who do in-house payroll should consider the following:
- The church is ultimately responsible for the deposit and payment of federal tax liabilities. Even though a staff member may forward the tax amounts to the taxing authority to make the tax deposits, the church is the responsible party. The staff member may also be held personally liable for certain unpaid federal taxes. If the staff member fails to make the federal tax payments, the IRS may assess penalties and interest on the church account.
- Do you have a payroll expert on staff? If not, who is going to keep you updated on the massive amount of payroll laws and timetables you need to keep track of? How do you know you are filing the right forms at the right times and with the right people?
- Do you have a tax expert on staff? If not, how do you classify employees for the IRS. Who determines taxable and nontaxable income? Who calculates housing allowance?
- The real pain of doing payroll yourself is normally felt one to three years AFTER the payroll was processed.
- Handling your own payroll involves more than setting up your employees’ hours, housing, and deductions. You have obligations to the government—filling out forms and making regular tax filings.
Clergy Financial Resources serves as a resource for clients to help analyze the complexity of clergy tax law, church payroll & HR issues. Our professionals are committed to helping clients stay informed about tax news, developments and trends in various specialty areas.
This article is intended to provide readers with guidance in tax matters. The article does not constitute, and should not be treated as professional advice regarding the use of any particular tax technique. Every effort has been made to assure the accuracy of the information. Clergy Financial Resources and the author do not assume responsibility for any individual’s reliance upon the information provided in the article. Readers should independently verify all information before applying it to a particular fact situation, and should independently determine the impact of any particular tax planning technique. If you are seeking legal advice, you are encouraged to consult an attorney.
For more information or if you need additional assistance, please use the contact information below.
Clergy Financial Resources
11214 86th Avenue N.
Maple Grove, MN 55369
Tel: (763) 425-8778
Fax: (888) 876-5101