Mon. Jun 27th, 2022

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3 Different Types Of Church Payroll Systems

There are many clergy payroll services that can help clergy members with their finances. Churches have a number of options when it comes to choosing the best clergy payroll service for their needs. In this article, we will discuss 3 different types of clergy payroll systems and how they work.

You need to understand the different types of clergy payroll systems. There are three main types:

  • Self-Employment: This is the most common type of clergy payroll system. Under this system, ministers are considered self-employed and are responsible for their own income taxes and social security contributions.

Ministers in this category usually receive a W-­‐² form from their church which documents their earnings and lists them as an independent contractor.

Pros: This system is very flexible and allows ministers to work with other churches if they wish. It also gives ministers more control over their finances.

Cons: Ministers in this category often have to pay more in taxes and may not receive all the benefits that employees receive, such as health insurance or retirement contributions.

We hope this information on clergy payroll services was helpful.