Is Your Church Payroll Done Correctly? - 60% Are Not!
During 2017 we became increasingly aware that a startling percentage of church payrolls are incorrectly prepared. These are usually payrolls where the church innocently relies upon one of the major payroll companies, like ADP or Paychex, to do things correctly and “keep the church out of trouble”.
But the truth is that church payrolls are such a small part of the business for those companies, that they do not train their staff how to set up clergy payroll for dual status individuals. Mistakes we find include:
Taxes are improperly reported and withheld.
Housing Allowance is incorrectly set up often resulting in overstating income on clergy W2 forms.
Payroll frequencies are in violation of the Fair Labor Standards Act.
My discussions with executives of both ADP and Paychex affirms my assertion that 60% of the church payrolls they prepare are incorrect.
As a service to American churches, Wisdom Over Wealth now provides a complementary review of your church’s payroll. After you securely send it to us, we will check it and have a phone call directly to you (or your designate) to tell you what we see.
Simply send a pdf copy of the most recent payroll register to us via the secure portal on our website OR click on the link at the bottom of the page for “Send us a file” and follow the instructions there.