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

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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.

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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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