New to payroll module

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Heidilr1
Posts: 81
Joined: Wed Oct 20, 2010 10:52 am

New to payroll module

Post by Heidilr1 »

I have v10.4 and am new to the payroll module. I am using the annual payroll tax tables but they don't seem to be match what our payroll service is calculating. Where could the problem be? One example: State (NC) - 0 but not over $10,625 - 6%. On a bi-weekly check of $800, that's $48 (3 exemptions). But our payroll service has $24. On federal, same check, PC calculates $50, but our service has $6.92.

What am I not understanding/missing?

Heidilr1
Posts: 81
Joined: Wed Oct 20, 2010 10:52 am

Re: New to payroll module

Post by Heidilr1 »

I also notice that when we have an employee with a medical deduction, their ss withholding is being taken off their gross salary, not salary less the medical. That's not right, is it?

NeilZ
Posts: 10578
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
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Re: New to payroll module

Post by NeilZ »

Heidilr1 wrote:I have v10.4 and am new to the payroll module. I am using the annual payroll tax tables but they don't seem to be match what our payroll service is calculating. Where could the problem be? One example: State (NC) - 0 but not over $10,625 - 6%. On a bi-weekly check of $800, that's $48 (3 exemptions). But our payroll service has $24. On federal, same check, PC calculates $50, but our service has $6.92.

What am I not understanding/missing?
Do you have the system setup per this Knowledge Base article for setting up N.C. tax tables ??:
http://powerchurch.com/support/kb/kbvie ... cle_id=123
and this one for Federal taxes ??:
http://powerchurch.com/support/kb/kbvie ... icle_id=14

And do you have the standard deduction setup for each employee as shown under the heading: How does PowerChurch Plus calculate taxes?

In versions 10.4 and earlier, you need to actually multiply the standard deduction by the number of exemptions and list that on the pay item as shown under that example. In version 11, the system actually figures out the total dollar amount, all you need to do is enter the number of exemptions.

Heidilr1 wrote:I also notice that when we have an employee with a medical deduction, their ss withholding is being taken off their gross salary, not salary less the medical. That's not right, is it?
Are you sure that the medical deduction can be classified as a 'pre-tax' deduction. If its toward a medical insurance plan, I believe it is not pre-tax, if its a health savings plan, I believe it is pre-tax.

In either case, this thread could help you verify your setup: http://powerchurch.com/forum/viewtopic. ... 55&p=14873
Neil Zampella

Using PC+ since 1999.

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