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Payroll for Churches and Religious Organizations

November 24, 2010

The end of the year is the perfect time to switch payroll companies. Clergy Financial Resources offers an easy online payroll management service that specifically meets the requirements of religious organizations.

We have an unparalleled tax expertise on the complex issues associated with church payroll and clergy compensation. Sixty percent of churches do not follow the IRS requirements for clergy compensation, housing allowance and fringe benefits.

Selecting a payroll company may seem easy at first. However, a closer look at the effort, cost, liabilities, education, and ongoing training reveals some potential challenges. The greatest challenge for the church in selecting a payroll company is finding someone who is truly qualified in clergy tax law.  Knowledge and experience in clergy tax law are critical.  Large payroll companies may be great with payrolls of for-profit businesses. However, they only provide payroll service and do not provide any guidance and adequate knowledge relating to clergy compensation, PARP, pension accounts, clergy W-2 forms, etc.  A standard payroll company only knows what you tell them.  If your office personal or payroll contact person does not have an accurate and up-to-date knowledge of standard tax law and clergy tax law as it specifically affects individual situations, your payroll can become nothing more than an exercise in wrongdoing.

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.

The good news is that we have plenty of options. And as the market has expanded, improved technology has made our payroll solutions more powerful and easy to use.

The bad news is that 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. And, according to the Internal Revenue Service, that can cost you money if everything isn’t done right: 40 percent of churches pay an average penalty of $845 per year for late or incorrect payroll filings.

In 2009, 60% of clergy W-2 forms were issued in error by churches and payroll companies.  Ministry leaders must understand these challenges and recognize the need for industry specialists.

Clergy Financial Resources’ online payroll management is designed for churches that want control and flexibility 24/7.  You simply go online and process when you want, where you want. You won’t need to play phone tag  in order to process your payroll. You’ll never have to wait for your paycheck, pay stubs or payroll reports to be delivered. All your payroll reports are available at your fingertips.  Plus, you can make direct changes to your payroll data without waiting for a payroll service administrator.

Employees receive online information too. They can access their payroll information, pay stubs and W-2s when and where they want. On payday, each employ For a free payroll quote click here.

Payroll Features and Details
Payroll in 3 Easy Steps
Payroll Pricing
Common Church Payroll Errors


From → Clergy Tax Law

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