It can run payroll, pay employees using direct deposits and checks, and handle federal, state, and local taxes. MinistryWorks’ payroll services are designed to handle the pay processing and tax calculation needs of churches. It offers automatic payroll runs, and you can pay employees via manual checks and direct deposits. In addition to Affordable Care Act (ACA) reporting, it manages tax withholdings and deductions and even provides you with a dedicated payroll specialist that can help manage pay runs. SurePayroll by Paychex is optimal for small churches looking for budget-friendly and flexible pay processing options. It offers a full-service payroll package (costing $39 plus $7 per employee monthly) with access to employee benefits plans and automatic tax payments and filings.
QuickBooks Payroll: Best Payroll Software for Churches That Want Fast Payments
For instance, OnPay automatically handles situations specific to clergy compensation and taxes, non-clergy members, and housing allowances. Unlike the other providers on our list of best payroll services for churches, OnPay only offers one plan. For $40 plus $6 per employee monthly, you are granted access to all of its HR, payroll, and employee benefits features. However, while it has user-friendly and efficient payroll tools, its church-specific functionalities aren’t as robust as MinistryWorks, which offers church payroll advisers who can offer expert advice. Its platform also doesn’t connect with church management systems as Gusto does, and some of its time tracking and accounting integrations cost extra.
The Top 7 Church Payroll Services
So make very sure you have a W-4 in your Church files for each of your employees. Her work has been featured by business brands such as Adobe, WorkFusion, AT&T, SEMRush, Fit Small Business, USA Today Blueprint, Content Marketing Institute, Towards Data Science and Business2Community. One more notable feature is FreshBooks’ highly customizable invoices. Churches can use these invoices to earn added revenue for weddings, funerals and other events.
Wave Accounting
Then, check to ensure your software offers a plan that is both within your budget and enables you to perform essential actions. Its free plan offers unlimited income and expense tracking, key reports such as Profit and Loss reports, the ability to add unlimited collaborators, cash flow tracking and an intuitive dashboard. It also offers automated payment reminders, credit card, bank and Apple Pay payments or donations acceptance and a mobile app for depositing checks and finance tracking.
Churches can use this feature to save time (and, so, money), eliminate late fees and error-proof their accounting. You can set rules to automate your church accounting such as rules to automate payments, categorize transactions and auto-charge cards for recurring transactions. With it, you can receive payments, automate payment reminders, send recurring invoices, track expenses and mileage, import bank and credit card payments, pull reports, customize invoices and manage contractors. Zoho’s paid plans range from $15 to $240 per month (if billed annually) and add features such as workflow automation, project-expense tracking, tax figuring, in-depth analytics and customizable reports. When choosing the best church payroll software for your organization, make a list of must-have and nice-to-have features and prioritize them accordingly. Also, look at your budget and figure out how much you can afford to pay each month for the software.
That way, you can continue to do what you do best, which is address the needs of your congregation. Some churches use accrual accounting, which is recording income and expenses when they are earned. An alternative to accrual accounting is cash accounting, which entails recording income and expenses when they are received or paid. However, some lenders require accrual accounting for their clients, including church clients, per generally accepted accounting principles (GAAP). Access your church, ministry or non-profit payroll reports, update employee information or submit payrolls at any time. Access your accounting, tax or payroll reports, update employee information or submit payrolls at any time.
- Expenses for health care, soul care, massages, restorative trips, and sabbaticals are taxable fringe benefits you need to capture as income.
- The highlight of using this platform to run payroll is that it allows you to generate checks, tax forms, reports, and allowances with ease.
- All churches need to withhold income taxes from their employees’ wages.
- The solution’s Knowledge Base helps you set up and maintain payroll according to federal and state laws.
- When it comes to a minister’s gross income, it generally doesn’t include the fair rental value of their home that’s provided as part of the compensation for services performed as a minister.
- This comprehensive payroll program makes it a breeze to register contributions, customize invoices, compile financial reports, and much more.
We compared 17 payroll services for churches, looking for functionalities we believe are most important for ministries. These features include payroll and tax management tools specific to church payroll, plus attributes that make the service easy to use. We also considered providers https://www.bookstime.com/ that offer affordable pricing options, church payroll support, multiple payment options, and basic HR solutions for managing onboarding and employee benefits. The system lets users choose solutions (online forms, PTO filings) that clergy or non-clergy employees can access.
- Safeguard your church staff with benefits they’ll love like 401(k), health insurance, and more.
- Regardless of the size of your organization, our services can be tailored to meet your needs and budget.
- Finally, Realm’s church accounting and payroll reporting software allows churches to select standard accounting reports, then customize them based on time periods, funds, core accounts and departments.
- The platform offers flexible payroll solutions, including a full-service package.
- However, when it comes to tailoring these reports to meet specific and unique requirements, MinistryWorks falls short in terms of customizability.
Benefit accrual and usage tracking
Starting at just $40, plus $6 per each worker, you’ll get access to OnPay’s award-winning payroll. Remember, you will not be matching or withholding FICA taxes on qualifying ministers as they are considered by the IRS to have a dual status. Churches that want to save money and error-proof their accounting via easy-to-use intelligent automations should consider Zoho Books. Churches that need to track expenses around projects for which parishioners or donors have earmarked their donations should consider Xero for their accounting software. Using Aplos’ CRM tools, you can create a member and donor database with profiles. Profiles house details including household relationships, group or ministry involvement, volunteer preferences, key dates and notes.
That includes any salary or fees for things like performing marriages, funerals, and baptisms. An employee minister, however, may enter into a voluntary withholding church payroll agreement with your church by completing a W-4 Form. In that case, you can withhold not only income taxes but also estimated self-employment taxes.