New Line item on Payroll

[sonshine]

Taxable payroll deduction to go towards a bible school. The school allows ministers to go to school for $100.00 a month. It has been decided that the minister will pay the $100.00, however, the $100.00 must be sent to the school as a church check versus the minister writing the check. Is there a way to reflect this on the payroll stub? If so how do I set this up? I know that the minister can write a check to the church and the church turn around and issue a check to the bible school, but we would rather not take this route. This school is a division of Liberty University. Also, we do not want to reduce his Salary to pay for this, because the minister is still liable for the taxes. Please advise.

[JohnDMeyers]

You are giving conflicting information.

Taxable payroll deduction to go towards a bible school.

You are saying that the deduction is taxable.

the minister will pay the $100.00

You are saying that the minister will pay the $100.00

Also, we do not want to reduce his Salary to pay for this, because the minister is still liable for the taxes.

If the minister is to pay the $100.00, and the $100.00 is a taxable deduction, then his after-tax-Salary will reflect the $100.00 plus the resultant payroll tax.

[sonshine]

Hi,

Sorry for the confusion. Sounds like your explaination is what I am trying to accomplish.

Minster pays the $100. and it is taxable deduction, how would I set that up?

[tborgal]

I do something similar to this occasionally because a wrong credit card is used for personal purchases. If you create a new payroll deduction item in the payroll module giving it a description such as "Bible School" - select item type of 'deduction', tax table 'none', then select your debit account - which should be the same bank account that the payroll account is in - select a credit account - the account you will pay the tuition payment from. Do not select any items under the W2 tab since you do not want this to be added to any of the boxes on the W2. Then all you need to do is to add this item to the Minister's pay items list, make sure that the yes button is selected in the process field. Once added you can enter the amount to be deducted in the amount field and you are done. Make sure that once the payroll check has been cut that you return the amount field in this deduction to zero or this amount will be deducted again when the next payroll check is cut. This deduction will show up on the payroll check stub - if you use computer generated payroll checks - so that your Minister will know that the money has been deducted.

Hope this helps.

[sonshine]

You are Awesome! It worked, thank you so much