Jesus counseled us to pay taxes. It’s in the Bible, Matthew 22:17-21, NIV. “Tell us then, what is your opinion? Is it right to pay taxes to Caesar or not? But Jesus, knowing their evil intent, said, ‘You hypocrites, why are you trying to trap Me? Show Me the coin used for paying the tax.’ They brought Him a denarius, and He asked them, ‘Whose portrait is this? And whose inscription?’ ‘Caesar’s,’ they replied. Then He said to them, ‘Give to Caesar what is Caesar’s, and to God what is God’s.”

When it comes to paying Clergy, Minister, and employees, laws and the IRS have made the payroll function a time consuming nightmare for the church. Payroll for nonprofits and tax exempt organizations can be a challenge as certain rules and exceptions apply that are distinct than what can be applicable to for-profit organizations.

As per said, the IRS regulates 501(c)(3) organizations and these rules present themselves as complicated and difficult matters for staff members and even accountants to deliver, administer and apply properly. Religious organizations, such as churches, that pay clergy through payroll often have a more challenging task to consider due to non-standard payroll taxations, including taxation, parsonage allowance, and FICA offset payments.

However, AG Church Consulting is ready to help your nonprofit organizations and churches in the evaluation on which tax exemptions are applicable to your system. We will also make sure that your payroll tax returns have met both federal and state protocols by completing and filing them on time. AG Church Consulting is distinct from other similar competitors since we promote full understanding, knowledge and integration to your organization by listening attentively. As we get into the process of knowing your organization, in its exact state and form, we’ll soon learn what possible service can be applicable as a proactive solution to your complexities.

Doing your payroll properly for your church or nonprofit organization is a heavy load. A lot of laws underlie these challenges which continue to change and evolve through time, adding too much stress on your part as you keep up with these transitions.

Tips on How To Do Your Payroll:

AG Church Consulting understands that churches, religious organizations and nonprofit organizations have unique needs for their payroll system. Churches have to manage Clergy taxable and non-taxable earnings, and all nonprofits require payroll allocation to its appropriate departments.

To initially help you in your payroll challenges, here are some tips to guide you in managing such complexity:

paper with a pencil on top Keeping up with the ever-changing laws in payroll for churches and nonprofit organizations is almost reduced to being inconceivable. However, we can give you a step-by-step guide to help you get through this challenging task – whether you have non-minister employees or use services from a CPA firm. And as hard as it gets, the only trick to minimize your payroll stress is to set up a payroll system that complies with all applicable federal and state laws.
Step-by-step Payroll Guide
two purple paper bags with tax free print Aside from ensuring that your payroll meets tax regulations, you have to properly perform all of your payroll needs too – from debit on your payroll taxes, deposit payrolls on their due date and prepare your payroll tax filings.
Manage Payroll
magnifying glass on top of an opened book Misclassification of workers is one of the many evolving root of causes in creating more conflict to your payroll status. Several misconceptions are carried by small nonprofits and churches, thinking that they are not under the same labor and employment laws with the for-profit organizations. This is a very costly mistake, thus always try to consider employees of your church and issue them with a W-2 form.
Misclassification of Workers
histogram graph Nonprofit organizations and churches don’t carry the same payroll taxes. For nonprofits, you are required to withhold and pay your federal taxes on your payroll. However, if you are working on a church and if you have any non-minister employees, you need to withhold and pair with Social Security tax (FICA). Churches are also required to withhold income taxes when applicable.
Payroll Taxes
keyboard with one hand typing A W-2 tax form shows the amount of taxes restrained from your paycheck within the year. It is often used to file your federal and state taxes. To your church employee, having a W-2 form is extremely important when preparing for your tax return. And to ensure you have it in time, the IRS requires your employer to send a W-2 no later than January 31.
Form W-2
two pair of hands pointing on the histogram graph on a paper If your church paid an amount in rents, services, awards and other income payment, then you should secure to file and send an IRS Form 1099-MISC to independent contractors. But when your church hires a worker to perform such service, they are not classified under independent contractor under the same IRS form. Instead, they are under the coverage of Form W-2.
Form 1099
a hand pointing a graph on a digital device IRS Form 941 is yet another federal payroll tax form that you need to complete in order to report the total number of your church employees as well as the total wages and payroll paid during the quarter.
Form 941

Get the Payroll Solution That Best Fits Your Church Needs.

AG Church Consulting understands that when it comes to payroll service – no one size fits all. That’s why we offer the following 3 custom payroll processing options to better address your church needs.

How much do we charge?

In order to give you an accurate price for our payroll services, we need to know a little more about your church or nonprofit organization and what services you’re interested in. Our services offer high quality standards at a bargain. Set an appointment with us to discuss this matter more thoroughly.

So are you affiliated to churches, religious organizations and any nonprofit organizations that need help in providing support to manage the growing compliance and complexity of payroll? If you wish to seek a partner who will ardently work with you, then AG Church Consulting is here for your service. With our comprehensive experience, we can effectively address any exclusive features of your specific needs. Invest your time to meet and discuss your payroll challenges with one of AG Church Consulting’s team of staffs and allow us to give you demonstrations on how we can be an efficient, productive partner to your administration while you save money.

We will work with you closely to better understand the uniqueness of your mission and bring a responsive solution in delivering results you seek for payroll and tax compliance.

What could be more satisfying than having a dependable partner who has the tool in mapping and implementing solutions to all of your unique needs and freeing your organization from such challenges to make you focus on issues that weighs more? Talk to one of our consultants today by calling our service hotline at 866-203-2527.

Church Loan
Regardless of how much your church’s financing needs are, we are always ready to help you.
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Church Accounting
We provide church accounting and tax return services for churches or ministries.
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Church Payroll
Payroll for nonprofits and tax exempt organizations can be a challenge so we make it easier!
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  • Contact Information

    Advanced Global Church Consulting

    401 - C Main Street
    Laurel, MD 20707

    Toll Free:866-203-2527