Payroll for Churches: Top 7 Payroll Software Solutions for Churches

The service also includes setting up and customizing time tracking and accounting integrations you might need (the others on our list either charge extra for this or only offer it in higher tiers). To choose the best church payroll software, we consulted user reviews and product documentation. We considered factors such as pricing, customer support and user reviews.

Take the Stress Out of Filing Taxes

We gave priority to those that offer automatic payroll runs and multiple payment options with at least a two-day direct deposit option. We also looked for tax payment and filing services that cover all levels (federal, state, and local taxes), including year-end tax reporting (W-2s and 1099s). This is almost always because the processing is being done according to standard corporate laws as opposed to church laws. Tax calculations can be one of the most complicated parts of running payroll manually. The best payroll software for churches will make these calculations automatically and some may even deposit the deductions for you. Churches and other religious organizations should make sure that their payroll software accounts for ministry specific taxes to ensure compliance.

Are clergy exempt from taxes?

Prices increase with the addition of each employee that you pay, however. Gusto also provides a complete suite of other HR integrated software, such as talent management, 401(k) and retirement plan management, healthcare benefits, program development and support. If you’re looking for an all-in-one software, Gusto is definitely worthy of your consideration. Churches have to file a Form 941 for each fiscal quarter throughout the year.

Powerful payroll reports

Positive reviews on Paycom state that the best qualities include simplicity, seamless process, ease of use, and saving time on the backend. In addition, you’ll want to Partnership Accounting know their church title or position, start date, and whether they are full-time or part-time. The main distinction between the two is the right of control and relationship to business. ClergyTech has provided prompt, professional service with a personal and friendly touch to our church for over 20 years. By submitting this form, you agree to the processing of your personal information as described in our Privacy Policy. Our guide helps you find the right solution that will keep your religious organization’s workforce thriving.

Do you want fast direct deposits to pay church employees?

But some churches, often innocently, think it’s OK to game the system. They pay an employee less but consider part of that pay a housing allowance. Because of a pastor’s dual tax status, the employee won’t have to pay income tax on that amount, giving them an artificial pay raise.

It’s also perfect for those looking for church payroll services that integrate seamlessly with QuickBooks Online. This makes handling church accounting and pay processing easy for ministries. The system lets users choose solutions (online unearned revenue forms, PTO filings) that clergy or non-clergy employees can access. It also offers full-service payroll processing, unlimited pay runs, health insurance benefit access for all states, and more. You can even use OnPay to calculate clergy staff payments by excluding federal unemployment taxes. We found that Gusto offers all of the features churches would need to facilitate their payroll and tax compliance needs.

• 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.
• You can elect to submit your payroll information via online client portal, email, telephone or fax.
• And the best church accounting software helps you create positive experiences for your employees with benefits management and paid time off tracking.
• Make sure you’ve classified each person correctly and that you’re applying the proper withholding rules to their paychecks.
• OnPay is the best church payroll software for administrators who are looking for powerful system permissions to delegate HR and payroll tasks.
• This church payroll software is made for ministry and clergy tax law.

• We also looked for tax payment and filing services that cover all levels (federal, state, and local taxes), including year-end tax reporting (W-2s and 1099s).
• Besides the Affordable Care Act (ACA) report feature, the software can manage tax withholdings and deductions.
• Anyone who is an employee of the church and receives a regular salary should be on the church payroll.
• Instead, they are considered “salaried” employees and are typically paid a set amount each week, regardless of the number of hours they work.
• Fortunately, many excellent church payroll services are out there to help you get it right.
• They specialize in small to medium-sized organizations, so this payroll service is worth checking out if you’re a smaller church.

These apps allow church administrators to manage payroll on the go, making the process more efficient. Churches often receive donations and tithes, which can complicate payroll. Proper record-keeping and software can help manage these funds effectively. It’s also crucial to differentiate between taxable income and tax-free donations. National Association of Church Business Administration offers insights into efficient financial management.

MinistryWorks: Best church-specific software

For more guidance about understanding the scope of payroll services—and how they align with your organization’s needs, consider downloading our complete guide to payroll solutions. Housing allowances for ministers also have to be properly accounted for in payroll. Depending on how a housing allowance is structured, it could qualify as taxable income. Any benefits such as paid time off or retirement accounts must also be included. Payroll software for churches that understands how to account for pastoral wages and withholding can simplify all this for a church. QuickBooks Payroll is church payroll a payroll management tool that assists businesses with automated tax calculations, filings, and time tracking.