Tax withholdings not working

[Flemingtl]

Thanks for all of your quick responses, I appreciate it.
I am having another issue in that the Federal and State withholdings are not working. The only withholding showing is the additional Federal withholding that I put in?

[NeilZ]

Thanks for all of your quick responses, I appreciate it.
I am having another issue in that the Federal and State withholdings are not working. The only withholding showing is the additional Federal withholding that I put in?

OK .. have you setup the Federal and State Tax Withholding tables ?? If so, have you assigned them properly to the payroll item descriptions, and made sure that each employee has this item assigned to them with the checkbox checked ??

If you have access to your Powerchurch 11 manual, you should check out pages 276 and 277 for info on how to update these tables.

If you don't have access to the manual, or on an earlier version of Powerchurch, press the (F1) key to bring up help, then search using the phrase tax table.

Hope this helps.

[Flemingtl]

I have PC+ ver.11
I believe I have all of that setup properly, I set up the tables from the tax guides according to the tables that PC+ said to use.

I now also notice that the office mgr's withholdings are off by about .16 for Fed and about $3 for State according to the amounts that Quickbooks said to withhold. It is interesting though that there are amounts shown to withhold on hers under the same items that are not showing on his. (And yes, I do have those pay items checked in his profile in Maintain List of Employees.)

[Flemingtl]

Another thing, I tried to get it to withhold something by raising the amount of the salary (all the way up to a $100,000 salary check) and it still didn't withhold any Fed. or State.

[NeilZ]

Another thing, I tried to get it to withhold something by raising the amount of the salary (all the way up to a $100,000 salary check) and it still didn't withhold any Fed. or State.

Is the Pastor's salary item set up something like this:

taxPastor.jpg

Note this is setup for a Pennsylvania city where there are additional city taxes, but the state and federal tax items should be checked off as shown.

Note we've used the More options selection from the Tax Options, this gives us the capability to remove the Pastor's salary from the Medicare & SSI taxes.

I'd also check to see if you've updated the Federal Income Tax tables for Single & Married for 2011 tax rates. The new rates are listed in this IRS notice: http://www.irs.gov/pub/irs-pdf/n1036.pdf.

You must enter the ANNUAL tax rates from the notice, the system will figure out the rest.

[Flemingtl]

OHHHH! There it is, the "More Options"! It was selected as "Taxable" and Fed. and State were not selected under "More Options"!
I checked on all the item descriptions and I think I was going to have problems with others, not just his!

Is Health Insurance taxable for the Pastor and/or Support Staff?

THANKS SO MUCH FOR ALL YOUR HELP!!
Terry

[NeilZ]

OHHHH! There it is, the "More Options"! It was selected as "Taxable" and Fed. and State were not selected under "More Options"!
I checked on all the item descriptions and I think I was going to have problems with others, not just his!

Is Health Insurance taxable for the Pastor and/or Support Staff?

THANKS SO MUCH FOR ALL YOUR HELP!!
Terry

There are IRS rules on health insurance payments, that you may have to review: IRS Pub 15-B for 2010. This says that health insurance provided by an employer are NOT taxable.

That said, you should check with your accountant to be sure.

[Flemingtl]

GOT IT!

THANKS AGAIN!!