Church Payrolls Services
Why use a Church Payroll Service:
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The IRS treats Pastors and Churches diffently from other professions and employers.
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The treasurer or administrator is frequently a volunteer with limited time that could be better used in ministry.
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A Church Payroll service can withhold state and federal taxes so the pastor no longer needs to make quarterly estimated tax payments.
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The use of payroll services minimizes high payroll tax penalties for missed, late or incorrect payroll tax deposits.
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There is much confusion and false information regarding the proper way to prepare and report church payrolls. We can provide tax guidance and clarity in a challenging area of tax law.
Why Use Willoughby CPA:
- We prepare tax returns for approximately 100 pastors and know how the W-2 and 1099-Misc should be prepared. We have seen the common errors.
- Our remote payroll entry allows payroll hours to be entered from the church office or the home office. Sample Remote Payroll Entry
- Our private and secure web page Sample Web-Employee allows employees to verify they were paid correctly. No longer will the treasurer need to trackdown employees to give them their check.
- Direct Deposit means the funds are immediately available on payday without the proverbial trip to the bank.
- You want your church finances to be above reproach.
Less than 5% of the W-2's (prepared by churches and other payroll services) we see each year are prepared as requested by the IRS in IRS Publication 517. The best thing a church can do for its pastors is to withhold federal income tax from each paycheck like all other employees. Too many pastors struggle to make the quarterly estimated tax payments. If the church withholds federal income tax sufficient to cover the income tax and self-employment tax there is no reason for pastors to struggle every quarter to make the estimated tax payments.
Most payroll services either look to the client to tell them how to prepare the payroll and W-2's or "trust the computer" to correctly prepare the W-2's. At Willoughby CPA we know the best way to prepare clergy W-2's. This is a sample of how Willoughby CPA prepares a clergy W-2.  W-2 Rev George Whitefild.pdf. This how Willoughby CPA prepares for non-ordained staff Wanda The Secretary.pdf.
For more information on payroll service call 855-582-911 (855-5-tax911) or e-mail info@tax911.com.
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