To address a variety of challenges regarding the remuneration of priest, the presbyteral council has unanimously recommended the centralization of payroll for parishes. This initiative has also received the support of the College of Consultors and the Archdiocesan Finance Council, and Archbishop Byrnes has now asked for all pastors' cooperation in this change for the good of the archdiocese.

Below is some important information all parish administrators need to know about the process.

Purpose of Centralization

The purpose of payroll centralization at the parishes is to ensure compliance with local and national tax regulation and is a necessary step to introducing certain supplemental benefits across all parishes, such as a retirement savings plan, 403(b), cafeteria plan, Aflac, group life insurance, and the like. Centralization of payroll will allow smaller parishes to avail of these benefits were currently they may not have the option because of participation thresholds.

Centralization will also immediately address several challenges facing our parishes. These challenges include:

1. Lack of payroll documentation and file retention;

2. Lack of regulatory compliance;

3. Un-auditability of payroll; and

4. Difficulties with tax reporting.

Timeline

The timing for the implementation of payroll centralization in the parishes is critical. The chancery is targeting December 27, 2017, as the deadline for compliance of all parishes to achieve unified tax reporting of W-2 forms at the end of the calendar year 2018. The intermediate timeline goals are as follows:

1. 11/16 to 11/27: Collect date for payroll processing for clergy, religious and staff in working in a parish;

2. 12/1 to 12/20: Start input of data on 3rd party payroll platform; and

3. 12/27 to 1/9: 1st payroll processing for the year 2018

Coordination of Payroll Tasks

Successful implementation will require cooperation and coordination between parishes and the archdiocesan finance office. Parishes must take the following initial steps:

1. Notify your current 3rd part payroll service provider

2. Complete the "On-Boarding Process Checklist." (See packet distributed at Friday morning's workshop)

3. Submit completed onboarding packet to archdiocese finance office by Nov. 27, 2017

Once the centralization of payroll is implemented, each parish is asked to be responsible for the following payroll tasks:

1. Use the Open Time Clock (www.opentimeclock.com) to record working time. The archdiocese finance office is available to assist. See Department of Labor FLSA Fact Sheet;

2. Convert pay period to bi-weekly (This has been recommended by our 3rd party payroll service provider for efficiency). The archdiocese finance office is available to assist;

3. Adjust pay period to allow for 1 week waiting period for payroll processing. The archdiocese finance office is available to assist;

4. Remain responsible for hiring and managing employee performance;

5. Maintain discretion (within norms) on salary and benefits of parish staff; and

6. Maintain a copy of employee files.

The archdiocese finance office will be responsible for the following payroll tasks:

1. Collect priests and employee data

2. Collection and review of work timesheet data

3. Distribution of payroll slips

4. Respond to queries related to payroll processing

5. Maintain a copy of employee files

6. File quarterly and annual tax reports to IRS and Government of Guam.

7. Review payroll information to ensure compliance with applicable regulations.

Learn More

This is only a few key pieces of information to help a parish successfully navigate through this time of transition. If your parish was not represented at the Friday morning meeting or if you have questions about the implementation of centralized payroll for your parish, please contact the archdiocese finance office at 562-0064.

Also, if your parish has not picked up your on-boarding packet, please contact the finance office.