Question: How would using this payroll service benefit our church or ministry?
Answer: Our payroll services are specifically geared for churches and ministries. We use an innovative approach, taking advantage of IRS Publication 517. This allows the church to gain the advantage of transferring responsibility for meeting tax, payroll, and human resource regulations to us, so that existing staff can devote more time to ministry rather than payroll.
Question: How will my accounting system reflect the payroll process?
Answer: Using the payroll service reduces your accounting requirements. Only one entry is required; Payroll Expense. In some cases, payroll is tracked by Department to manage ministry expenses. In that case, the payroll detail may be downloaded and uploaded into your accounting system.
Question: Will my pastoral exemption be at risk if we participate in a Professional Employment arrangement?
Answer: No.....Ministers exemptions are a result of their profession, based on the following: Ministers are individuals who are duly ordained, commissioned, or licensed by a religious body constituting a church or church denomination. They are given the authority to conduct religious worship, perform sacerdotal functions, and administer ordinances and sacraments according to the prescribed tenets and practices of that religious organization. Under the Professional Employee arrangement, the minister is paid by the Church's agent, through a contractual agreement. All funds are tracked electronically to ensure an "audit trail" for IRS purposes.
Question: How do employees get check stub information?
Answer: They go to an assigned website and click employee log in. The username and password is assigned to each employee - they can view and print their pay stubs or the ministry administrator can print and give them to the employees.
Question: What does the W2 show as the employer?
Answer: The W2 shows your organization as employer.
Question: How is the Pastors ability to opt out of S.S. affected when participating in ministry payroll?
Answer: The pastors status is unchanged due to his/her occupation and is linked to the Social Security number and is unaffected by the payroll provider.
Question: What determines the Ministers S.S. status and housing allowance?
Answer: According to IRS.GOV, Topic 417 - Earnings for Clergy: For income tax purposes, a licensed, commissioned, or ordained minister is generally treated as a common law employee of his or her church, denomination, or sect. and qualifies for certain exemptions. Reference the "Publications Tab".
Question: How do I enter payroll and get general payroll information and reports?
Answer: You are supplied an Administrator User Name and Password. Prior to each payroll, you log-on and enter the payroll hours for each individual.
Question: How are W2s provided?
Answer: At the end of the year, you log-on and print the W-2s for each employee.
Question: Can we exempt ourselves from State Unemployment Tax?
Answer: In some states, churches are automatically exempt from Federal Unemployment Tax, however, some churches participate to ensure their employees are covered. If your state requires State Unemployment Tax you will have to participate. If it presently exempts your organization, your exemption will continue.
Question: Is there a demo of the payroll system available?
Answer: Yes. We schedule demos of the system on an if required basis.
Question: What forms must I file with the Federal, State, and Local governments?
Answer: We file and pay all taxes including the 941. If you begin payroll service part way through a calendar year, you are still responsible for filing tax forms for the payroll prior to Payroll Services. Thereafter, it is our responsibility to file and pay the employee taxes.