Payroll Services for Churches and Non-profits

Church and religious organizations have unique tax provisions that apply to ministers. PayCo Payroll Solutions is experienced, knowledgeable and ready to assist with your church’s payroll needs. No matter how large or small your church, PayCo will help you navigate your church payroll challenges with ease.

PayCo can assist you with the following church tax considerations:

  • The exemption of some ministers from self-employment taxAccounting and payroll for churches
  • The treatment of ministers not exempt from self-employment tax as self-employed for social security tax purposes, even though wages are reported on Form W-2
  • The exemption of ministerial wages from federal income tax withholding
  • The exclusion from income tax of a parsonage allowance (or housing allowance) provided to the minister

Other payroll complexities for churches:

  • How to pay pre-tax benefits to ministers
  • How to reimburse ministers for travel expenses, etc.
  • How to report and pay the housing allowance