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March 21, 2024
Question

We are a church using quickbooks onlinel What is the best method of paying the pastor?

  • March 21, 2024
  • 1 reply
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1 reply

March 21, 2024

Thanks for joining us here in the Community, @ridgecrestbapt. Allow me to share some insight on ways you can pay a pastor.

 

If you don't have a payroll subscription, you can set up the pastor as a vendor:

 

  1. Go to Expenses and select Vendors.
  2. Select New vendor.
  3. Fill in the necessary details in the Vendor information window.
  4. Select Save.

 

Then, you can use an expense or a check transaction for their payments.

 

On the other hand, if you have a payroll subscription, you need to set the pastor as an employee:

 

  1. Go to Payroll, then choose Employees.
  2. Select Add an employee.
  3. Add your employee’s name, email address, and hire date. If you want them to enter their personal, tax, and banking info, ensure the Employee self-setup is on. QuickBooks will automatically email them an invite to QuickBooks Workforce. Your employee can enter their address, Social Security number, W-4, and banking info.
  4. Select Add employee.
  5. Select any section to add the remaining employee info. 
  6. When finished adding info to a tab, select Save.

 

Then, ensure to exempt them from payroll taxes by following steps 1 and 2 from this article: Set up clergy on payroll.

 

Additionally, you can run a report to see your business finances.

 

Please let me know if you have other concerns about paying a pastor. I'll be here to lend a hand.