Can we pay all of clergy pay as housing but still track vacation, sick, and holiday hours accrual per pay check and use?

Hey there, @RRBCfinance! I’m thrilled to help you navigate the process of exempting your clergy from payroll taxes. It’s awesome that you’re taking this vital step to ensure everything is handled correctly. Let’s get right into it.

Follow these steps:

Exempt Clergy from Federal and State Income Tax

1. Navigate to Payroll and select Employees.
2. Choose your clergy member from the list.
3. In the Tax withholdings section, click Edit.
4. If prompted, pick the applicable Federal W-4 form.
5. Under the Federal Withholding Filing Status dropdown, select Exempt (if applicable).
6. In the State Withholding Filing Status dropdown, choose Exempt (if applicable).
7. Once you're finished, hit Save.

Exempt them from Other Payroll Taxes

1. Head back to Payroll and select Employees.
2. Choose your clergy member and click Edit Employee.
3. Under What are [Employee's] Withholdings?, select the Edit button.
4. Tick the Social Security, Medicare, FUTA, or [State] SUI boxes as needed in the Tax Exemptions section.
5. Finally, hit Save, then Done.

For more detailed information, check out this article: Set up clergy on payroll.

And if you need to update your pay schedules, here's the article for your reference: Set up and manage payroll schedules.

If there’s anything else you need or any other QuickBooks-related questions on your mind, don’t hesitate to ask. You’re doing an excellent job managing your payroll, and I’m here to help make the process as smooth as possible. Have a fantastic day!