Obviously, payroll software is essential for keeping track of employee compensation, but the benefits go above and beyond sending paychecks. For example, when integrated with other HR systems, church payroll software can help to streamline the application, interview, and hiring process and cover additional Human Resources department needs. Not only do you have to figure out how to calculate wages and withholdings, but you also have to stay compliant with federal and state laws and exemptions.

Quiz: Determine the Ideal Church Payroll Software for You

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. You can add payroll processing for $40 per month, plus $6 per employee.

Best Church Payroll Services in 2024

Now she runs a peer support group and is the Technical Consultant for her current church, MCC Illiana. While she is no longer pastoring, she is staying active in other parts of the ministry. If you’re looking for a company that will cater to your church’s size, Rippling promises to easily scale with you from 2 to 2,000 employees. Positive reviews on Paycom state that the best qualities include simplicity, seamless process, ease of use, and saving time on the backend.

What is Included in Church Payroll Software?

• For instance, OnPay automatically handles situations specific to clergy compensation and taxes, non-clergy members, and housing allowances.
• The highest level is the HCM plan, priced at $199 per month plus $12 per employee per month.
• 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).
• Automated reminders, email templates, letter-creation tools and bulk texting help you personalize outreach and donation requests.
• If that happens, the church will receive a written notice and have a reasonable time to respond.
• Also, look to see if the chosen software offers a discount for churches and nonprofits.

Instead, the income a minister earns in performing their services in the exercise of their ministry is subject to Self-Employment Contributions Act (SECA) taxes unless they are exempt. That includes any salary or fees for things like performing marriages, funerals, and baptisms. An employee minister, however, may enter into a voluntary withholding agreement with your church by completing a W-4 Form.

Track any additions and subtractions to employee wages.

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 church payroll 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.

They can view and print their paystubs, W2s, 1099s and update their addresses and W-4 information. You can also allow them to self-report their daily hours worked for each pay period. You can elect to submit your payroll information via online client portal, email, telephone or fax. We also offer an automated payroll service for those clients with salary-only staff. The great thing about using this app is that it files your taxes for you. Every time you run payroll, the solution files your tax sheets with the right federal or state agencies.

Manage payroll and time off for your church staff

https://www.bookstime.com/ has unique laws, benefits, and exemptions, it is different from traditional and corporate payroll. Like payroll for churches, HR for churches also includes a specialized list of laws when compared to their corporate counterparts. Even if you have an HR professional in-house with years of experience, our team can serve as a complementary asset, helping develop and execute improved HR processes. Nonprofits such as churches even receive a discount on the software through TechSoup, which is a nonprofit tech marketplace.

Do you want fast direct deposits to pay church employees?