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How to make up for previous unwithheld payroll payments?

by JC
(Texas)

We are a small church that is planting. I am in the process of setting up payroll for our 2 employees (pastor and music director). I have made 2 payments for them but they were lump sums. Therefore, they did not have anything withheld from their paychecks.

As I am in the process of setting up payroll via Intuit, I was asked if the church/business will pay for the make-up withholdings or if the employees will make it up by withholding more from their future paychecks between now and the end of the year.

Does anyone have advice on which option I should go with? Or has anyone run into a similar circumstance?

Thanks in advance!

Comments for How to make up for previous unwithheld payroll payments?

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Oct 23, 2014
 No Payroll Withholding on Pastor
by: Vickey

I can't advise on the best route to go on the make-up withholding; however, I will remind you that you cannot withhold FICA from a pastor's pay.

You would only withhold income taxes...from the pastor's pay...if he voluntarily requested the church to withhold those taxes for him by completing a W-4.

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Join in and write your own page! It's easy to do. How? Simply click here to return to Church Accounting FAQs.

If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)



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