Church Payroll And Fund Accounting

Church Payroll With Fund Accounting

Having a church payroll system that adheres to fund accounting principles is essential to the church’s operations! IconCMO payroll module reduces operational costs for organizations by preparing payroll checks. The payroll module assists in the payment of the payroll liabilities to governmental agencies. The payroll module, built on fund accounting principles, ensures the church is FASB-compliant. Thus, payroll entries post to the correct accounting fund for each employee.

IconCMO church payroll can easily handle pastors’ salaries. Pastor’s salaries can get complex—fast. Pastors can have housing allowances excluded from gross income for income tax purposes. But the allowance is not excluded from self-employment taxes. Add to this other allowances, such as a car, phone, and gas. Another example is a retirement account, in which churches give a portion of the monthly amount to the pastor. Then the pastor pays for it himself. All of these nuances can wreak havoc on a system that isn’t set up to handle them. Let IconCMO handle this for you as painlessly as possible.

Using Tax Tables Or Entering Your Own Calculation

IconCMO has two options for each employee. You can use the tax tables that are part of the payroll system or enter your own calculations. These two options result in a high-value, low-cost payroll solution for your organization.

Using the tax tables

Including tax tables eliminates the need to subscribe to expensive add-on payroll tax services. Tax tables take the guesswork out of employees’ deductions. They include all the published taxes from various federal, state, and local taxing authorities.

Entering your own tax calculation

There are times when being able to do your own tax calculation is easier. This is why IconCMO can enter tax formulas into the system. This extra option helps eliminate manual work in Excel each pay period.

Payroll Software Features