Payroll from presschool

[pcmachurch]

We have a preschool that is owned by our church. For payroll they write us a check once a month (employees paid monthly). How would I set this up to not show as regular income? Would it be set up as a liability. Thanks!

[wms7328]

One way would be to set up the preschool as a separate accounting fund. Then you could post income to this account when they write the check and expense when you pay the employees. That way you could do reports on that fund that would show income and expenses and you could also use this fund to record tax withholding for those employees. You could use the same checking account for this fund so your reconcilations would be correct.

This would keep it separate from the regular church fund that would be set up as a different accounting fund.

[pcmachurch]

Thanks so much! We've been moving into PC+ for a year now and are finally on-line. This was one of those things you don't think of until it's almost too late.