No wages in box 1 of W2?

[crystalv]

We just switched to PC+ in september. I am getting w2 info together and have run into a problem. For our "called" pastors, their wages are not showing in box 1. This is what I have set up in payroll maintain item descriptions:

"called", salaries = non-taxable (NOT showing)
salaries & hourly = taxable (and is showing in box 1)
housing allowance= housing allowance (is showing in box 14)
403B= retirement deduction (showing in box 12 w/code E)
"called",403B = pretax deduction (NOT showing)
health ins= after-tax deduction

I know that "called" wages are not taxable by employer but have to be reported, right? We were using quickbooks and the w2s I pulled from it has wages in box 1.

[Zorak]

If the amounts need to be reported in box 1 as taxable by federal, then mark the income item as taxable and simply don't add any tax deduction items on that employee.

This will report the income as taxable, but will not process any deductions for them.

[secondbaptistchurch]

I'm having the same issue. The pastor and youth pastor have no wages in Box 1. They do have fed and state tax they had withheld showing in the appropriate boxes. This is the first year I have had this to happen. I can't seem to find the problem.

[NeilZ]

I'm having the same issue. The pastor and youth pastor have no wages in Box 1. They do have fed and state tax they had withheld showing in the appropriate boxes. This is the first year I have had this to happen. I can't seem to find the problem.

Again, which version of Powerchurch are you using ??

If you're using V11, then the advice Zorak gave in the previous post will work.

[NeilZ]

We just switched to PC+ in september. I am getting w2 info together and have run into a problem. For our "called" pastors, their wages are not showing in box 1. This is what I have set up in payroll maintain item descriptions:

"called", salaries = non-taxable (NOT showing)
salaries & hourly = taxable (and is showing in box 1)
housing allowance= housing allowance (is showing in box 14)
403B= retirement deduction (showing in box 12 w/code E)
"called",403B = pretax deduction (NOT showing)
health ins= after-tax deduction

I know that "called" wages are not taxable by employer but have to be reported, right? We were using quickbooks and the w2s I pulled from it has wages in box 1.

Chrystal ...

Unless you're giving your called pastor's 1099s, their salaries are Taxable under the IRS code. They are non-taxable under Social Security and Medicare, but then they have to pay Self-Employment Tax (SECA) unless they have an approved exemption from the IRS.

Anyway, this knowledgebase article may help you with this:

http://powerchurch.com/support/kb/kbvie ... icle_id=22