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CHURCH FINANCE WEBINARS
All things Payroll (ADP)Clyde Harris
Susan Legault
Your Presenters
Clyde Harris is a partner in Alwyn Enterprises ( a bookkeeping service used
by many of our communities of faith), The Treasurer for Ebenezer United Church in
Scarborough and the Treasurer for Toronto Southeast Presbytery. An expert on
United Church Finances, he has led workshops for church treasurers for more than
eighteen years in Toronto Southeast Presbytery and more recently in South West
Presbytery. Clyde enjoys talking with church treasurers to help them to fulfil their
roles.
Susan Legault has been the Manager, Human Resources and Payroll for
The United Church of Canada since December, 2006. She is a United Church
member and thinks she was hired because her cover letter mentioned that she was
the Envelope Secretary for her congregation, and the hiring supervisor wasn’t sure
what that was! She works to simplify processes and explanations, and finds the
church a rewarding workplace.The United Church of Canada – Mission through
Finance2
United Church Creed - abbreviated for Treasurers
We are not alone,we live in God’s world.
We believe in God:…
We trust in God.
We are called to be the Church:…
to love and serve others,…
God is with us.We are not alone.
Thanks be to God.
The United Church of Canada – Mission through
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PAYROLL
•Update from CRA
•Honorariums/Pay People Correctly
•ADP – Payroll Service
•Clergy Residence Deduction
•CRA Perspective
CRA Updates and recent news
• My Business Account• Online access for Charities
• Available by June, 2019
• File HST Rebates• Payment direct to bank within 10 days
• File Registered Charities Information Return• T3010 completed and filed online
• May have to scan financial reports to attach
• More information on setting up account• December 19th, 2018 webinar at 1:00 p.m.
• https://live.webcastcanada.ca/webcast/registration/27c55926-3098-47b5-8fe9-fa927ecfa03e
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Using Honorariums Correctly
For very occasional situations only
- Must issue T4A if income > $500
- get social insurance number upfront even if
you don’t expect to be issuing a T4A
(pulpit supply)
-*** if a retired minister wants to claim a clergy residence deduction, they need to
be an employee. (T4, source deductions)
- appropriate for a treasurer too!
PAY PEOPLE Correctly
• Most church staff (organists, office administrators, custodians) are employees (full or part time) for payroll purposes , and not fee-for-service (CPP & EI deductions apply).
• CRA recommends that all fees (ieweddings) should be paid to the church and reported as part of minister income
Benefits of being on the ADP Payroll
• Automated remittances to CRA and for pensions & benefits
• Automated annual source reporting
• More checks and balances
• Great support from Pastoral Charge Payroll team at General Council Office
• Avoid duplicate processes if at all possible.Treasurer’s time is worth much more than the fees saved by doing manually
Payroll Service - overview
Mandatory for all ministry personnel with an annual salary of $5,000 or more; optional for non-ministry personnel.
ADP Summary of Services:
• Receives payroll changes and processes the payroll
• Processes employee pay, and deposits pay to the employee bank account
• Calculates and remits statutory deductions to the applicable government agencies
• Calculates and remits pension and benefits deductions to The United Church of Canada
• Debits the ministry unit bank account
Payroll Service - overviewADP Fees if Paid Once per Month
Processing fee (for 3 employees)
Base Processing Fee $ 17.59
Per Employee Fee $ 3.51 ($1.17 x 3 employees)
Total Monthly Fee $ 21.10
Year-end
Base Processing Fee $ 17.59
Per Employee T4/Relevé $ 7.02 ($2.34 x 3 employees)
Postage $ 4.69
Total Year-End Fee $ 29.30
Total Annual Fee: payroll ($21.10x12) + year-end ($29.30)): $282.50
Delivery of Reports/tax information as requested:
Direct Mail $4.69
Courier $9.36
All fees subject to applicable sales tax
Becoming an Authorized Contact
• ADP can only speak with individuals who are “authorized contacts”
• To become an authorized contact, the current contact must complete, sign, and fax to ADP the ‘Contact Authorization Form’; to obtain the form, call ADP Client Services
• It is advisable to have two authorized contacts should you not be available to administer the payroll
• If you need to become an authorized contact, and your current contact is not available to sign the form, call the Pastoral Charge Service:
1-800-268-3781 ext. 3132, or ext. 2757
Payroll Processing Options
• ADP can process your payroll monthly, semi-monthly.
• Biweekly is no longer available.
• In order for ADP to obtain payroll related information prior to each pay processed, there are 3 options:
• ADP schedules a regular “input” call with the ADP administrator prior to each pay date
• ADP receives a fax from the ADP administrator prior to each pay date
• ADP runs the payroll “as is” and no fax or input call is required; often selected in situations where there are few changes to the payroll
Payroll Reports• ADP generates several reports each time your
payroll is processed
• These reports contain detailed information regarding the breakdown of the payroll amount being deducted from the pastoral charge bank account including: • Canada Revenue remittances (CPP, EI, and Tax)• United Church pension & benefit remittances
(employer and employee portions)• Employee pay processed and deposited • ADP service fees
• The ADP reports can be accessed through the internet (Reports on Internet-ROI) or by mail; there is no cost for payroll reports obtained via ROI, payroll reports obtained via mail are subject to postage fees
Payroll Reports• The Statement of Earnings and Deductions (Pay
Statement) is a report generated by ADP; the treasurer must pass this on to the employee after each pay is processed
• For information on payroll reports, visit the Pastoral Charge Payroll Service webpage to view “Understanding ADP Payroll Reports”.
• https://www.united-church.ca/leadership/church-administration/pastoral-charge-payroll-service
Making Payroll Changes
• Use of the “Pastoral Charge Payroll Form” (available
online) to make payroll changes, such as:
• Adding/terminating a new employee
• Making an employee inactive
• Changing the salary and/or hours
• https://www.united-
church.ca/sites/default/files/resources/pastoral_charg
e_payroll_form_2019.pdf
Payroll Reference Grid
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Year End / New Year
Year End information is available on the Pastoral Charge Payroll Website. In addition, a year-end email is sent in November to all Treasurers.
https://www.united-church.ca/leadership/church-administration/pastoral-charge-payroll-service
Contact Information
• ADP Client Services
phone: 1-877-377-4784, fax: 1-877-701-7329
• United Church Pension & Benefit Centre 1-
855-647-8222
• Pastoral Charge Payroll Service
1-800-268-3781 ext. 3132, or ext 2757
Resources
Pastoral Charge Payroll Service webpage – all documents and contact information related to payroll
https://www.united-church.ca/leadership/church-administration/pastoral-charge-payroll-service
The webpage includes the following:
- 2019 Chapter Four, Financial Handbook for
Congregations
- 2019 Minimum Salary and Allowances Schedule
- Cost-of-Living Groups
- ADP payroll form & year-end information
A Primer on how Ministry Personnel are Taxed
Not meant to provide specific advice!
HOW MINISTERS ARE TAXED –A QUICK WORD
Many people believe that ministers are entitled to write off a variety of expenses on their individual tax returns.
NOT TRUE.
With the exception of the CLERGY RESIDENCE DEDUCTION “CRD”, ministers get the same tax treatment as anyone else.
UNLESS the Pastoral Charge treasurer certifies the minister is required to incur other employment expenses. This is done by signing a T2200.
Treasurers should be willing to sign the form IF ASKED, but should not get involved in determining any amounts. Leave that to the minister. Very few ministers go this route.
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PAYROLL – KEY POINT - New for Many
CLERGY RESIDENCE DEDUCTION
•A unique tax deduction on a portion of a minister’s income.
•Based on FAIR MARKET value of the minister’s ACTUAL housing
•NOT what we call “cash housing allowance”
•exempt from CPP
•Subject to EI
PAYROLL – Reducing Tax Withheld - T1213DOUBLE CHECK to see if the minister wants to go through the
paperwork hassle
If YES,
Have minister complete T1213 for the coming year
Provide supporting material
Await approval
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PAYROLL – Reducing Tax Withheld - T1213 Tips
www.united-church.ca/local/congfin
Look under “what’s new” for detailed instructions
• “amount” on T1213 Form is total taxable income
• Tick “other” and write “Clergy residence deduction”
• Include:• Copy of prior year T1223
• Church letter confirming employment, projected income , CRD eligibility and projected T1223 amount
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AS A TREASURER MYSELF….
•THANK YOU ! For what you do•Don’t be afraid to push back on principle. No one wants to be responsible for a loss of charitable status.
•And remind yourself about point #1
God is with us.We are not alone.
Thanks be to God.
New questions
Recorded webinar and copy of PowerPoint:
www.united-in-learning.com
Questions not answered:
clyde@alwynenterprises.ca
slegault@united-church.ca
emathies@united-church.ca
1 800 268-3781 x4022
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