Our award-winning software processes payroll in minutes, automates all tax deductions for non-clergy employees, and lets you easily mark clergy members exempt from Social Security and Medicare taxes (FICA). And with OnPay’s accuracy guarantee, you can be confident in the calculations so the focus stays on your congregation.
— God's Glory Non Denomination Corp
Save time by letting new hires onboard themselves. It's easy to update personal details, view pay stubs, and access important tax documents at any time through the employee portal.
Avoid paper cuts and stay organized with our secure document vault. All documents and messages sent through OnPay are automatically saved and stored for lifetime reference.
Safeguard your church staff with benefits they’ll love like 401(k), health insurance, and more. It all syncs seamlessly with your payroll, and we’ll handle all the calculations.
We’re here to do more for you and make payroll easy on your budget. Starting at just $40, plus $6 per each worker, you’ll get access to OnPay’s award-winning payroll.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.
Yes! Though churches are generally tax-exempt, they’re still responsible to withhold, report, and pay tax obligations for all employees working non-clergy roles. This includes taxes under the Federal Insurance Contributions Act (FICA), federal and state income taxes, as well as any local taxes that apply. It is a good idea to consult your tax advisor or bookkeeper if you are unsure of your tax obligations.
It’s common for clergy such as ministers and priests to receive a Form W-2 for work they have completed in service of a ministry, even though they have no Social security or Medicare taxes withheld. This is because clergy must pay into social security and Medicare by filing Schedule SE (Form 1040), which is for Self-Employment Tax. If you have any questions about clergy obligations or what your church or religious organization is responsible for, it is always a good idea to seek the advice of a tax professional or a CPA.
Yes, churches, ministries, and other religious organizations that have employees are typically required to file Form 941 with the federal government on a quarterly basis to report paycheck withholdings for employee income taxes, as well as any Social Security and Medicare taxes withheld from non-clergy employee wages. If you are unsure of your obligations, it is a good idea to seek consultation from your tax professional or bookkeeper.
Generally, churches, religious organizations, and ministries will file Form 940 annually when paying wages of $1,500 or more in any quarter of a calendar year, or if they had one or more employees working for 20 or more different weeks. It is always a good idea to seek guidance from a tax expert, lawyer, or CPA for answers to any tax questions or for clarity on your obligations.
Under certain conditions, churches and or ministries may be exempt from paying Social Security and Medicare taxes (both of which make up FICA). For example, a religious organization may file IRS Form 8274 to request an exemption from paying the employer’s share of Social Security and Medicare taxes, which the IRS may approve or decline. Though our team does not assist with this form, it’s likely an accountant, CPA or legal professional can help steer you in the right direction.
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