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The Diocese of New York offers a complete payroll service to those congregations that wish it. It is possible to sign up for our service at the beginning of any year. We need to know by November if you'll be joining the payroll service the following January 1.
We recommend that you use a professional payroll service
The burden of payroll-related filings grows ever more onerous. It is our strong recommendation that every congregation arrange for some outside service to take responsibility for payroll tax filings. The service offered by the diocesan office is meant to serve those congregations with so small a number of staff persons that the cost of using a commercial service seems prohibitive.
In 1998, we started the Diocesan Payroll service with 12 congregations. Currently we are up to more than 438 employees in 135 congregations and related ministries such as parish-sponsored nursery schools and summer camps.
Your employees will be encouraged to use direct deposit; their paychecks will be deposited electronically into their bank accounts. The payroll service will relieve your congregation of complete responsibility for all payroll tax related filings-Federal, State and local income tax, Social Security and Medicare taxes, NYS Unemployment insurance, NYS disability insurance, and Workers' Compensation insurance. (You will, of course, continue to pay your share of these taxes and types of insurance, but the diocesan office will see to all the filings.)
When you use a commercial payroll service that is responsible for tax filings, you authorize the service to debit your bank account for the amount of the payroll and related taxes. The diocesan service is set up the same way. We will initiate a debit to your account for the amount of the payroll and related taxes and charges on the days indicated on the attached calendar. We will email or fax you a statement showing the amount we will debit two (2) business days before we take the funds. You will be able to post to your ledger directly from our statement. Our communications are efficient, timely and clear.
Your employees can also set aside a part of their compensation into a Medical Flexible Spending Account to pay for unreimbursed medical expenses on a pre-tax basis.
Disability, Worker's Comp and Unemployment
We cover all employees for disability and Workers' Compensation insurance. We cover all lay employees for unemployment insurance (SUI).
Your employees will be carried on our disability, Worker's Comp, and SUI policies. Disability and Worker's Comp are annual charges that come in the spring. We will tell you what the charges are and work out the payment. You may save on the Worker's Comp premium.
For SUI you will be set up on a direct reimbursement basis. When you enroll in the diocesan payroll service, a small percentage of the payroll is set aside each pay period for any claims paid on behalf of lay employees on the service. The reserve fund contributes 2/3 of this claim and the parish pays the remainder.
How it works
You need to give us all additions, changes, and terminations, as well as hours to be paid, by noon usually around the 2nd and the 16th of each month. See the Payroll Calendar on the side bar.
Checks are produced about a week in advance of the end of the pay period. This is so that, if checks must be mailed, they will be in the employees' hands by the 15th or the 30th. Employees with direct deposit will have their net pay deposited in their accounts around the 11th and the 26th. The 2014 Calendar is now available. Please find on the side bar.
Salaried employees will be paid up to date. That is, a salaried employee will receive his/her pay for the first half of the month on the first pay date of the month.
Hourly employees must be paid with a lag. For example, you will tell us by March 2nd of the hours worked by the employee from February 16th through the 28th. The employee will be paid for the second half of February with the check dated March 15th, which will hit the bank, if the employee has direct deposit, on March 12th.
How we pay
Each payroll period we will email or fax you a report showing the full amount of your payroll liability (gross wages, Social Security tax, Medicare tax, NYS Unemployment escrow, plus our charges for the payroll service). Two (2) business days after we send that report we will initiate an electronic debit to your account for that amount.
What it costs
The fee is $5.75 per person paid per payroll processing (Payroll is processed twice a month.)
Please find the forms and worksheets ALL on a single document entitled: "New Hire Enrollment Forms" located on the side bar.
1. An Employee New Hire/Enrollment Form with a voided check for direct deposit (Direct deposit is strongly recommended; almost mandatory! It will save you, your employees and us a lot of time and trouble.)
2. A Compensation worksheet
3. A Payroll Deduction worksheet
4. A Form I-9 for each person proving that the person is eligible to work in the U.S.
5. A Federal Form W-4 for each person.
6. A NYS Form IT-2104 for each employee. [Click here to go to NYS Finance Dept website]
7. For employees that reside in NJ; they will also need to fill out the NJ-W4; [Click here to go to NJ website
8. A clear photocopy of original social security card for tax purposes.
For clergy the following additional forms will be needed
A Tax-Excludable Clergy Parsonage Allowance Certification. There is a worksheet on the side bar document "New Hire Enrollment Forms", to assist the clergyperson in calculating the allowance.