Need to correct fed withholding on a check

[compresby486]

Hello!

We just upgraded to v. 11.1 from V. 9 on a machine running Windows XP Home edition, service pack 3.
I LOVE the new version!

We have never used the payroll module previously because our old treasurer insisted on figuring everything by hand so all he gave me was the net check amounts which I put in as any other manual check.
So- new year, new treasurer, new bank accounts, new version of PowerChurch- thanks to this awesome forum that I mostly lurk on, I'm almost around the learning curve!

What I need help with today is the very first check I wrote I noticed afterward that I had taken $3 out for federal tax on our custodian. He works very limited hours, approx. 10 per week, and this is his only "real" job right now so he really doesn't make enough to worry about federal taxes. Our treasurer has since decided to reimburse him the $3 on his most recent paycheck. We figure the check on the program, but hand-write the checks so I figured up his net pay and he added $3 to the check amount.

What would be the best way to handle this in PowerChurch? Do I void the original check and reissue it to correct the tax reports? But what do I do with the additional $3.00 he gave him in this latest check-right now I don't have that anywhere, so my balance is off accordingly. I figured up the latest check and posted that and then he added that additional $3. Help!

I really don't want to mess up our very first time using payroll! Can anyone help?

Thanks!
Denise

[JohnDMeyers]

I am assuming he has cashed both checks. One with $3 taken out, and one with a misc $3 in it.

So, he is even-up.

Here's my opinion. I am not a CPA, lawyer, or accountant, but I am a volunteer deacon, so I don't like to spend a lot of time making things harder than they need to be.

In my opinion, void both checks, make the necessary payroll corrections, reissue the checks in PowerChurch as manual checks, and reconcile them as if they came out even.

It's usually a good idea to run these "fixes" past the deacon board or pastor, too.

That will be the least painful way of getting things straightened out.

[compresby486]

Thanks John-

I prefer not making things harder than they have to be either. I ran the fix past the powers that be and they said it works for them. So that's what I'll do.

Thanks so much for taking the time to reply, I appreciate it!
Denise

[tborgal]

Just remember to put a very clear explanation in the notes field of each check as to why they are being voided. Also remember that when you go to reconcile your account with the bank that the check amounts will be different fro what the bank statement is showing.