Getting e-file software for churches requires a clear understanding of the accounting and payroll responsibilities. There are multiple tax implications of being a minister, a non-clergy employee, a contractor, or a volunteer. All-in-one payroll and electronic filing tools allows a church to properly compensate all its employees. E-filing is the next step after a church gets a grasp on things like a pastor’s dual tax status and housing allowance. An e-file system helps simplify the people and agencies that you send forms to and when they receive them.
Advanced Micro Solutions’ 1099-etc E-Filer software guarantees that your church remains fully compliant and that you file all 941 tax forms on time. Eliminate the cost of expensive 1099 and W-2 forms with software. We offer two e-file options: E-File Direct (add-on) or E-File Services.
How Does E-File Software Help Churches?
There are a lot of moving parts when it comes to a church’s payroll management process in spite of its tax-exempt status. Consider the problems that a church might face and how your decision to get an e-file program could prevent or resolve them.
You have misclassified independent contractors, employees, and/or volunteers. A church may be held liable for a worker’s employment taxes if it has misclassified someone who is their employee as an independent contractor. Determining a worker’s correct status is essential and not something that you want to delay. If you realize the church inadvertently made a mistake, e-file software can help you submit the correct information in a fraction of the traditional time.
You have not withheld taxes for the full amount of an employees’ income. Keep in mind that taxable income extends beyond a worker’s salary. Employees, including pastors, may at times expense an item that is classified as a “fringe benefit.” Getting in-house electronic filing technology allows a church to verify, view, and print any of these types of files.
A volunteer has inadvertently become an employee. Make sure that your church keeps a clearly defined line between its employees versus volunteers. You will find yourself in a legal gray area if money changes hands. The same can apply to giving your volunteer a monetary gift, which they will need to report as income. E-file software will help you stay organized and less worried as you keep all of the separate requirements straight for your institution.
You incorrectly set up the housing allowance. Churches already know that they need each pastor’s housing allowance approved in writing so that the Internal Revenue Service does not see it as taxable income. Getting an electronic filing system can help you manage your forms. The software can help you address any mistakes quickly if someone unintentionally gives the pastors an artificial pay raise, such as by paying them less but considering part of the pay as belonging to their housing allowance.
Best E-File Tools for Churches Running Payroll
Getting e-file software should not put undue strain on a church’s already limited budget. Finding a system that does more for you than the electronic filing basics is the best way to get the most out of any software purchase.
Modular Capabilities – Investing in an electronic filing program that goes hand-in-hand with your other software programs is highly efficient and often cost-effective. Rounding out e-filing with systems like our Software Generated Forms or AMS Payroll can make it so that you are able to avoid a painstaking integration process.
No More Form Purchases – Purchasing W-2 and 1099 forms can get expensive and it is not always an exact science. Given how the e-file threshold for W-2 and 1099 forms has dropped over the past five to 10 years, it may make the most sense to fully digitize how you file.
Easy Formatting – Find a software program that can carefully guide you through your tasks. Once your church enters its payroll data and fulfills any agency requirements, your e-filer can and should create any files in the approved IRS and SSA formats.
Why Getting AMS’ E-Filer Makes Sense
Our e-file software gives users two distinct service options. E-File Direct has a flat fee and users can file an unlimited number of forms. E-File Services is based on volume pricing, with a fee per form, and forms are filed electronically through a third-party vendor. The options allow churches and other organizations to customize their e-filing process based on their needs. Download our free 1099-etc Demo software today and get a better understanding of how our E-Filer operates alongside our core system and other add-on modules. These modules are: Software Generated Forms, Forms Filer Plus, AMS Payroll, 1042-S Filer, and an Affordable Care Act Filer.