Payroll

When the church employs anyone to serve a roll in the church many details need to be considered.  See salary guidelines under staffing.  (Embed link to that information).   The church further needs to make sure that Federal, State and Local taxes are filed, correct reports are filed with the IRS, the employee receives the right tax information, etc.

Many well-meaning and capable accountants or other volunteers at a church can care for this, but it requires a well-informed individual who is keeping up with tax laws and especially with ministerial tax law.  So that the church or the minister does not find themselves in trouble with the IRS we highly recommend using an outside Payroll provider such as ADP, Paychex or QuickBooks.

One provider that specializes in payroll for ministers and payroll tax services and is used by many of our Missionary Churches is MinistryWorks®. This ministry payroll and payroll tax services company is part of Brotherhood Mutual. In addition to payroll and payroll tax services, MinistryWorks also has HR solutions for time and attendance and for automating onboarding and talent management (known as HCM). To learn more visit Brotherhood Mutual and click on the Payroll Services card or visit MinistryWorks.

1099 Forms.   In general, a Form 1099–MISC should be sent to the payee and filed with the IRS for each person to whom an employer has paid one or more of the following: At least $600 in services, rents, prizes or awards and other income payments.  Consult a tax advisor if in doubt.