With OnPay’s intuitive software backed by expert support, getting payroll right is a breeze.
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“[OnPay] takes literally a matter of minutes to log into the dashboard, report hours for the wage earners, and click submit. With all employees on direct deposit now, that’s it. We’re done. The report that prints makes record keeping a breeze.”
– Dr. Joe W., Connection Christian Church of Odessa
“We are a small non-profit who just switched payroll services to OnPay. So far, the transition has been a very easy set up and an incredibly user friendly experience! I’m pleased with their help and customer service as well.”
– Nonprofit organization management
“I use OnPay because it keeps track of all my payroll needs, so my mind is free to think about other things. The price is really good, and it takes very little time to run payroll each week.”
– Matt B., New Hope Community Church
“Great customer service during onboarding and helping get everything set up. It was my business’ first time running payroll, and it felt so nice to have experts available to help answer my questions and make sure everything was tee’d up appropriately.”
– Sarahann Y., Viewpoints Project
Yes! Though churches are generally tax-exempt, they’re still responsible for withholding, reporting, and paying 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. If you want to simplify compliance, using payroll software for churches can make tracking and filing much easier. 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.
Under certain conditions, churches and 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.