About This Guide

ChMeetings is not a payroll platform. It does not calculate salaries, taxes, or withholdings. However, recording your final payroll figures in ChMeetings Accounting is essential to keep your financial records, reports, and bank reconciliation accurate.

Use this guide after your payroll has been calculated to record the results in ChMeetings.

Contents

Before You Begin
Clergy and Staff Compensation
Choose Your Recording Method
- Option A - Record Based on Bank Statement
- Option B - Detailed Recording
Frequently Asked Questions

Before You Begin

Please make sure the following are in place before recording payroll:

Accounting Setup complete - your Financial Accounts, Categories, and Funds are configured. See Accounting Setup for guidance.
Bank statement or payroll figures on hand - have the amounts that actually left your bank account, along with any payroll reports or pay slips, before you begin.

Clergy and Staff Compensation

Clergy compensation is often structured differently from regular employee pay. It may include several components that need to be recorded separately depending on how they are classified. Understanding these components before recording ensures that your entries reflect your actual payroll structure.

ChMeetings does not calculate or validate tax treatment. The classifications below are for recording purposes only. Always confirm how each component should be treated with a qualified accountant or payroll professional.

1. Taxable Compensation

This includes all compensation that is treated as taxable income, such as:

Regular salary or wages
Cash allowances for transport, clothing, or other purposes that do not qualify for tax exclusion
Any other taxable benefits paid through payroll

Record these amounts as part of the gross salary under your Salaries & Wages category.

2. Housing Allowance

A housing allowance is a portion of a pastor’s compensation set aside specifically for housing costs. Depending on your country and the applicable rules, a properly designated housing allowance may be excluded from certain taxes.

In ChMeetings, record housing allowance as a separate line item using a dedicated Housing Allowance category rather than including it in the general salary amount. This keeps it visible and separately trackable in your reports.

US Churches - Housing Allowance Rules

In the United States, a housing allowance may be excluded from federal income tax if all of the following conditions are met:

• It is designated in advance by the church board or governing body, in writing, before the start of the year or employment.

• It does not exceed the lesser of: the actual housing expenses incurred, the fair market rental value of the home, or the amount officially designated.

• The pastor uses the funds for housing (mortgage or rent, utilities, furnishings, repairs, etc.).

Note: A housing allowance is excluded from federal income tax but is not excluded from self-employment tax for clergy who are self-employed for Social Security purposes. Always confirm the correct treatment with a qualified accountant familiar with clergy taxation.

3. Retirement Contributions and Outside-of-Payroll Deductions

Some churches contribute to a pastor’s retirement plan or make other payments outside of the regular payroll cycle. These may include contributions to a 403(b), pension plan, or similar arrangement.

If these payments are made separately from regular payroll and appear as distinct bank transactions, record them as separate expense transactions using a dedicated category such as Retirement Contributions.

If they are included as part of the regular payroll withdrawal, add them as a separate line item within the same payroll transaction.

Note

Whether retirement contributions are tax-deductible, tax-deferred, or otherwise treated depends on the plan type and applicable law. Confirm the correct treatment with your accountant before recording.

4. Voluntary Withholding for Clergy

In some countries, clergy are not subject to standard employee tax withholding. Instead, they are responsible for managing their own tax obligations - for example, by making periodic estimated tax payments directly to the tax authority.

If a pastor requests voluntary withholding from their pay (for example, by submitting a withholding form to the church), the withheld amount is recorded as a negative line item in the payroll transaction, the same way as any other employee withholding in Option B.

If no withholding is set up, record only the gross compensation (or the net cash paid) with no withholding line items. The pastor’s personal tax obligations are managed separately and do not affect your church’s accounting records.

US Churches - Clergy and Self-Employment Tax

In the United States, clergy are typically treated as employees for income tax purposes but as self-employed for Social Security and Medicare. This means:

• The church does not withhold Social Security or Medicare from clergy pay, and does not pay the employer’s share of these taxes for clergy.

• The pastor is responsible for paying self-employment tax (covering both employee and employer portions) directly to the IRS, typically through quarterly estimated payments.

• If voluntary income tax withholding is set up, include it as a withholding line item in the payroll transaction (Option B).

Some churches choose to pay a Social Security allowance (a taxable cash addition to salary) to help offset the pastor’s self-employment tax burden. If your church does this, include it as a separate line item under a dedicated category in the payroll transaction.

Summary: How to Record Each Component

Compensation Component	How to Record in ChMeetings
Regular salary / taxable wages	Positive line item - Salaries & Wages category
Housing Allowance	Positive line item - dedicated Housing Allowance category
Retirement contributions (church-paid)	Positive line item or separate transaction - Retirement Contributions category
Social Security Allowance (if paid)	Positive line item - Salaries & Wages or dedicated category (taxable)
Voluntary income tax withholding	Negative line item - Federal Tax Withheld (Option B only)
No withholding set up	Record gross or net cash paid only - no withholding line items needed

Choose Your Recording Method

There are two ways to record payroll in ChMeetings. Read the comparison below, choose the method that fits your church, then follow only that section of this guide.

	Option A	Option B
Best for	Small churches	Churches needing gross salary in ChMeetings reports
What you record	Net pay or provider withdrawal - what the bank shows	Gross salary + each employee withholding
Categories needed	Salaries & Wages only	Salaries & Wages + two payroll tax parent categories
Gross salary in reports	No - use your payroll records	Yes
Requires tax payment entry	No	Yes - essential to complete the cycle
Details	Simple	More detailed

Option A - Record Based on Bank Statement

Recommended for small churches

This method keeps ChMeetings focused on accounting records. Record transactions based on what actually appears on your bank statement. The bank statement is your source of truth. Gross salary details are not tracked in ChMeetings - your payroll records or pay slips remain the reference for that.

A1. Set Up Categories

Go to Accounting > Categories > Add Category. See Manage Categories and Subcategories for details.

You only need the following categories for Option A: create them if they do not already exist.

Category	Type	Notes
Salaries & Wages	Expense	Your main payroll expense. Add subcategories by role if needed (e.g. Pastor Salary, Staff Salary).
Benefits	Expense	Optional. For health insurance or similar benefits the church covers.
Housing Allowance	Expense	Optional. For clergy housing allowances - see Clergy and Staff Compensation above.
Other Payroll Expenses	Expense	Optional. For any other payroll-related cost.

💡Budget

Include all of these in your budget. They are real church expenses.

A2. Set Up Payees

Go to Accounting > Payees > Add Payee. See Manage Payees for details.

One Payee per employee - if your bank shows individual payments to each employee.
A Payee for your payroll provider - if your bank shows a single withdrawal to a payroll provider rather than individual amounts.

💡 Autofill

After the first payroll run, select the Payee and click Autofill to load the last transaction’s details. Update the date and any amounts that changed, then save. This saves significant re-entry each period.

A3. Record Payroll Transactions

Go to Accounting > Accounts, select the account the payment came from, click Add Transaction, and set the type to Expense/Charge.

If your bank shows individual payments to each employee

Record one expense transaction per employee equal to the net pay they received.

Example:

Payee	Category	Fund	Amount
John Smith	Salaries & Wages	General Fund	$2,370.50
Mary Jones	Salaries & Wages	General Fund	$1,850.00

Payee: Select the employee.
Category: Select Salaries & Wages.
Fund: Select the Fund covering this expense.
Amount: Enter the net pay amount.
Note: Add the pay period (e.g. “Pay period: 1–15 June 2026”).
Attach: Attach the pay slip or payroll record.
Save.

If your bank shows one withdrawal to a payroll provider

Record one expense transaction for the total withdrawal amount using the payroll provider as the Payee.

Simple entry - when you do not need a breakdown inside ChMeetings:

Payee	Category	Fund	Amount
Payroll Provider	Salaries & Wages	General Fund	$2,500.00

With line items - when your payroll provider report shows a clear breakdown:

Line Item	Category	Fund	Amount
Employee Wages	Salaries & Wages	General Fund	$2,000.00
Employer Payroll Taxes	Other Payroll Expenses	General Fund	$153.00
Total (= bank withdrawal)			$2,153.00

Important

Only split into line items when your payroll provider report gives a clear breakdown. Do not estimate. The transaction total must always match the actual bank debit.

Payee: Select your payroll provider. From the second period, use Autofill.
Category / Line items: Single category for a simple entry, or multiple line items if splitting.
Amount: Must equal the actual bank withdrawal.
Attach: Attach the payroll provider’s report.
Save.

A4. Attach Supporting Documents

Attach pay slips, payroll summaries, or provider reports to each transaction. Use the attachment option when adding or editing a transaction. Files can be up to 10 MB. See Work With Transactions for details.

A5. Review Payroll in Reports

After recording payroll, go to Accounting > Reports to review your data:

Report	What It Shows
Category Overview	Payroll expense totals by category for a selected period.
Detailed Category Transaction	Every transaction under a specific category. Useful for reviewing individual payroll entries.
Payee Report	Total amounts per Payee. Filter by date to see annual or period totals per employee.
Detailed Payee Transaction	Individual transactions for a selected Payee with full details.
Income Statement	Payroll as part of your church’s total expenses for the period.
Budget vs Actual	Compares payroll against budgeted amounts for Salaries & Wages and other categories.

A6. Reconcile

Compare each payroll transaction in ChMeetings against the corresponding debit on your bank statement. Each transaction amount should match the bank debit exactly — whether that is net pay per employee or the provider’s total withdrawal. See Perform Reconciliation for a full guide.

Option B - Detailed Recording

For churches that need gross salary and withholdings visible in ChMeetings reports

This method records the gross salary and each employee withholding as separate line items, so your ChMeetings reports show a full payroll breakdown. The transaction total equals the net pay — the actual cash leaving your account.

Before you begin - Please read!

Option B creates a dependency on step B4 (Tax Payments). Until you record the quarterly tax payment, the Payroll Withholdings subcategories will show negative balances in reports. This is expected and resolves once the tax payment is recorded. If you do not plan to record quarterly tax payments in ChMeetings, use Option A instead.

B1. Set Up Categories

Go to Accounting > Categories > Add Category. See Manage Categories and Subcategories for details.

Option B requires three category setups: your main payroll category, and two parent categories with subcategories for payroll tax tracking.

Main payroll category

Create the following if they do not already exist:

Category	Type	Notes
Salaries & Wages	Expense	Your main payroll expense. Add subcategories by role if needed.
Benefits	Expense	Optional. For church-covered employee benefits.
Housing Allowance	Expense	Optional. For clergy housing allowances - see Clergy and Staff Compensation above.

💡 Budget

Include these in your budget. They are real church expenses.

Payroll Withholdings - employee withholding subcategories

Create this parent category with the following subcategories:

Payroll Withholdings	Do NOT include in Budget
└ Federal Income Tax Withheld	Federal tax deducted from the employee’s pay.
└ Social Security (Employee)	Employee’s Social Security contribution withheld from pay.
└ Medicare (Employee)	Employee’s Medicare contribution withheld from pay.
└ State / Local Tax Withheld	State or local tax withheld, if applicable.

Why not budgeted?

Employee withholdings are not the church’s expenses. They are the employee’s taxes that the church collects and passes on to the tax authority. They net to zero in reports once the tax payment is recorded.

Payroll Taxes - employer tax subcategories

Create this parent category with the following subcategories:

Payroll Taxes	Include in Budget
└ Social Security (Employer Share)	The church’s own Social Security contribution as an employer.
└ Medicare (Employer Share)	The church’s own Medicare contribution as an employer.

Why budgeted?

Employer taxes are real additional costs the church pays on top of employee wages, separate from employee withholdings.

Note

Tax types and rates above are US-based examples. Create only the subcategories that match your church’s actual obligations. Requirements vary by country and jurisdiction.

B2. Set Up Payees

Go to Accounting > Payees > Add Payee.

One Payee per employee - use the employee’s full name for per-employee reporting.
A Payee for your tax authority - e.g. “IRS” for US churches. Used for the quarterly tax payment covering all employees.

💡 Autofill

After the first payroll run, select the Payee and click Autofill to load the last transaction’s details. Update the date and amounts, then save. Works for both employee transactions and the quarterly tax payment.

B3. Record Payroll Transactions

Record one transaction per employee each pay period. Go to Accounting > Accounts, select the account the payment came from, click Add Transaction, and set the type to Expense/Charge.

How it works

Record the gross salary as a positive line item under Salaries & Wages. Record each employee withholding as a negative line item under the corresponding Payroll Withholdings subcategory. The negatives reduce the total from gross down to net pay - the actual cash leaving your account.

Example: Employee with $3,000 gross salary

Line Item	Category	Fund	Amount
Gross Salary	Salaries & Wages	General Fund	+$3,000.00
Federal Income Tax	Payroll Withholdings › Fed. Tax Withheld	General Fund	−$400.00
Social Security (Employee)	Payroll Withholdings › SS Employee	General Fund	−$186.00
Medicare (Employee)	Payroll Withholdings › Medicare Employee	General Fund	−$43.50
Transaction Total (Net Pay)	= Cash leaving your account		$2,370.50

Payee: Select the employee. From the second period, click Autofill and update the date.
Line item 1: Category → Salaries & Wages. Enter gross salary as a positive amount.
Line items 2+: Click Add Item for each withholding. Select the Payroll Withholdings subcategory and enter as a negative amount.
Confirm the transaction total equals the net pay amount.
Note: Add the pay period for reference.
Save.

B4. Record Tax Payments

Record one collected transaction per tax period - not one per employee. This matches how taxes are paid: a single payment to the tax authority covering all employees for the period.

This transaction uses the same Payroll Withholdings subcategories as the payroll transactions, but this time as positive amounts (remitting what was withheld), plus the Payroll Taxes subcategories for the employer’s contributions.

Example: Quarterly tax payment (combined totals across all employees)

Line Item	Category	Fund	Amount
Employee Fed. tax withheld, remitted	Payroll Withholdings › Fed. Tax Withheld	General Fund	+$800.00
Employee SS withheld, remitted	Payroll Withholdings › SS Employee	General Fund	+$372.00
Employee Medicare withheld, remitted	Payroll Withholdings › Medicare Employee	General Fund	+$87.00
Employer Social Security	Payroll Taxes › SS Employer Share	General Fund	+$372.00
Employer Medicare	Payroll Taxes › Medicare Employer Share	General Fund	+$87.00
Transaction Total	= Total quarterly tax payment		$1,718.00

Note on amounts

Amounts are the combined totals across all employees for the quarter. To get each total, go to Accounting > Reports > Detailed Category Transaction, select a Payroll Withholdings subcategory, and filter by the quarter’s date range. The report total gives you the combined figure.

Go to Accounting > Accounts > [Your Checking Account] > Add Transaction.
Type: Expense/Charge.
Payee: Select your tax authority. From the second quarter, use Autofill and update the amounts.
Add Payroll Withholdings line items as positive amounts - quarterly totals across all employees.
Add Payroll Taxes line items as positive amounts - quarterly totals across all employees.
Note: Reference the tax period (e.g. “Q2 2026 payroll taxes”).
Save.

B5. How Categories Work Together

Here is what the Category Overview report shows after both payroll transactions and the tax payment are recorded:

Category	In Payroll Transactions	In Tax Payment	Net in Reports	What It Means
Salaries & Wages	+$3,000	-	$3,000	Gross wage cost
Fed. Tax Withheld	−$800	+$800	$0	Pass-through - not the church’s cost
SS Employee	−$372	+$372	$0	Pass-through - not the church’s cost
Medicare Employee	−$87	+$87	$0	Pass-through - not the church’s cost
SS Employer Share	-	+$372	$372	Real church cost - budget for this
Medicare Employer Share	-	+$87	$87	Real church cost - budget for this
Total payroll cost			$3,459	Gross + employer taxes

💡 💡 💡 Key insight

Payroll Withholdings subcategories net to zero once the tax payment is recorded — this is correct. These are pass-through amounts, not the church’s expenses. The real payroll costs visible in reports are Salaries & Wages and the Payroll Taxes subcategories.

If Payroll Withholdings show negative balances, the quarterly tax payment has not yet been recorded for that period. Record it (step B4) and the balances will resolve.

B6. Attach Supporting Documents

Attach pay slips or payroll summaries to each transaction. Use the attachment option when adding or editing a transaction. Files can be up to 10 MB. See Work With Transactions for details.

B7. Review Payroll in Reports

Go to Accounting > Reports to review payroll data:

Report	What It Shows
Category Overview	Payroll totals by category. With Option B, Payroll Withholdings subcategories show $0 once the tax payment is recorded for the period.
Detailed Category Transaction	Every transaction under a specific category. Useful for reviewing individual entries or totalling quarterly withholdings before recording the tax payment.
Payee Report	Total amounts per Payee. Filter by date to see annual or period totals per employee, or the total paid to the tax authority.
Detailed Payee Transaction	Individual transactions for a selected Payee with full details.
Income Statement	Payroll as part of your church’s total expenses for the period.
Budget vs Actual	Compares payroll against budget for Salaries & Wages and Payroll Taxes categories.

For the Budget vs Actual report, see Work With Budgets for guidance.

B8. Reconcile

For payroll transactions: the transaction total - not the individual line items - should match the bank debit per employee (net pay).
For the tax payment: the transaction total should match its own separate bank debit.

See Perform Reconciliation for a full guide.

Frequently Asked Questions

Which option should I use?

Use Option A if you want straightforward recording that matches your bank statement. Suitable for most churches. Gross salary detail stays in your payroll records.

Use Option B if you need gross salary and individual withholdings visible inside ChMeetings reports. You must also record the quarterly tax payment (step B4) to complete the cycle.

Which categories should I include in my budget?

Option A: Salaries & Wages, Benefits, Housing Allowance, Other Payroll Expenses.

Option B: All of the above, plus Payroll Taxes subcategories (employer contributions). Do not budget Payroll Withholdings subcategories - they net to zero.

My Payroll Withholdings categories show negative balances. Is something wrong?

No - this is expected with Option B. These categories show negative balances between payroll runs and the quarterly tax payment. Record step B4 for that period and the balances will resolve to zero.

Should I record one transaction per employee or one for all employees combined?

For payroll transactions: one per employee is recommended. This gives you per-employee totals in the Payee report, useful for salary tracking and year-end reviews.

For the quarterly tax payment (Option B only): one collected transaction covering all employees, to match the single payment made to the tax authority.

Does the church pay Social Security and Medicare for clergy?

This depends on your country and how the pastor is classified. In the United States, clergy are typically treated as self-employed for Social Security and Medicare purposes, meaning the church does not pay the employer’s share for them. The pastor covers both portions through self-employment tax. See the Clergy and Staff Compensation section above for more detail, and always confirm with a qualified accountant.

What about the housing allowance?

Record housing allowance as a separate line item under a dedicated Housing Allowance category in the payroll transaction. Include it in your budget. See the Clergy and Staff Compensation section above for key rules and considerations.

Where can I see total payroll cost for the year?

Go to Accounting > Reports > Category Overview and set your date range. Salaries & Wages shows gross wage costs (Option B) or net pay (Option A). Payroll Taxes subcategories show employer tax costs (Option B). For per-employee totals, use Accounting > Reports > Payee.

Payroll rules vary by country, jurisdiction, church classification, and worker type. This guide covers how to record payroll transactions in ChMeetings Accounting. Please consult a qualified accountant to ensure your church handles payroll correctly according to the laws that apply to your organisation.