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linda-pacificlif
Level 1

How do I set up Payroll Tax Exemptions for pastors? Shouldn't there be options to select from?

When I click on Tax Exemptions, it says to contact a payroll specialist to set up an exemption.
1 Comment 1
MadelynC
Moderator

How do I set up Payroll Tax Exemptions for pastors? Shouldn't there be options to select from?

Setting up payroll tax exemptions for pastors in QuickBooks is manageable, @linda-pacificlif.


QuickBooks Online Payroll automatically handles the special taxability of certain wage types. Since you have employees (Pastors) who are eligible for special tax exemptions, you can indicate this when you are setting up their profiles.


There are 3 options you can select so Pastors doesn't have to pay the following taxes such as Federal Unemployment Tax Act ( FUTA, Social Security and Medicare, and State unemployment insurance (SUI).


Here’s the screenshots for your visual reference:
Capture.PNG
Capture.PNG


For nonprofit organizations, most churches are exempt from the federal unemployment tax (FUTA). The systems prompted you to contact a payroll specialist to ensure all set up are accurate. You can follow these instructions to reach out to them:

 

  1. Select Help at the top right.
  2. Press Contact Us.
  3. Enter this statement on the box ”need assistance in setting up tax exemptions for pastors.” 
  4. Click Continue.
  5. Choose Messaging or Get a callback

I have an article here that tackles clergy and church payroll in QuickBooks. You can read it to learn more. 


I’ve also added a link about Payroll 101 that contains useful information about the basics of payroll processing and your obligations as an employer.


Should you have other payroll concerns, please let me know. I’m always here to help you out. Have a great day.

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