Paper Checks for Compensation

At myXP, we are committed to ensuring that all compensation payments are accurately recorded and compliant with financial regulations. Issuing paper checks for staff compensation introduces significant complexity, risks, and administrative challenges. To maintain accuracy and compliance, myXP does not support providing paper checks for staff compensation.


This policy applies to all types of compensation payments, including salary, housing allowances, bonuses, additional pay, love offerings, stipends, and even benevolence payments. It is important to note that the IRS prohibits tax-free benevolence payments to church staff members, as these must be treated as taxable compensation. This does not apply to reimbursements.


To ensure proper recordkeeping and regulatory compliance, all compensation payments must be processed through the church’s payroll system. This policy allows us to:


  1. Maintain Accurate Records: Payroll processing ensures that compensation is appropriately documented, aligning with tax and reporting requirements.
  2. Reduce Errors and Risks: Paper checks increase the risk of discrepancies, including miscalculations, lost checks, and non-compliance with payroll laws.
  3. Streamline Administrative Effort: Processing payments through payroll improves efficiency and minimizes unnecessary administrative burdens. This approach also keeps the staff member in mind who will have their funds directly into their bank account vs follow their banking institutions process for depositing a check.

Alternative to Paper Checks

The only supported method for issuing compensation payments is through the church’s payroll system. Churches must submit the appropriate payroll form to myXP to have all compensation payments processed correctly.


Fee for Paper Check Issuance

While myXP has no authority over how churches manage their funds, moving forward, any church opting to provide paper checks for staff compensation will incur a $50 fee per check. This fee reflects the additional administrative work required to ensure these payments are accurately recorded and compliant with our standards.


Conclusion

Processing all compensation payments through payroll helps us partner effectively with churches to ensure accuracy, compliance, and efficiency. Avoiding paper checks reduces complexity and ensures that financial processes run smoothly.


Thank you for your cooperation in supporting effective financial management.