User Support Forum

Hello,
We need to set up Payroll for the first time ASAP.(Pastor Salary-Virginia) I browsed through the setup process and it looks pretty straight forward. Any tips to help us along this process? Is there a waiting period before payment can begin?

Thanks

RC_USER wrote:Hello,
We need to set up Payroll for the first time ASAP.(Pastor Salary-Virginia) I browsed through the setup process and it looks pretty straight forward. Any tips to help us along this process? Is there a waiting period before payment can begin?

Thanks

Are you going to be doing withholding for the Pastor? I do advise it, even though Pastors/Ministers need to pay Self-Employment tax along with Income tax, having the church withhold federal income tax, plus extra to cover the Self-Employment taxes eliminates the minister from having to pay quarterly estimated taxes.

1. Pastor Salary is taxable: Federal Income Tax, SS & Medicare
2. Housing allowance: Only SS & Medicare

That is one of the main things that cause issues. I'm not sure what special criteria (if any) there are for minister withholding of Virginia taxes as to if Housing Allowing is taxable or not, but here is the Powerchurch page on Virginia taxes:

https://www.powerchurch.com/support/130 ... tax-tables

Thanks for your assistance! We will be working through this sometime in the next few days.