Pastor's Payroll - Extra witholding

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SBCTrustee
Posts: 99
Joined: Sun Aug 22, 2004 3:52 pm
Location: Second Baptist Church
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Pastor's Payroll - Extra witholding

Post by SBCTrustee »

Hello Everone,

We are using all modules of PC+ v9. Our Pastor is self-employed. ( He has a wife & a child). He wants us to withold all of his payroll deductions that he must paid so that he won't have to worry about it at year's end.

He receives a car allowance, housing allowance, life Ins., health Ins., retirement. I have two big questions:

1
  • ) How do you make the system calculate the fact that he wants to pay an additionsal $20 for pay deduction for his wages?
    2) How do you get the system to deduct his Medicare & Social Security amount correctly since the church does not pay this as an expense to the church? My thinking is that he shoul pay twice the FICA amount (15.5%)
Finally some guidiance regarding setting up the allowances would be halpful, also.

I have gone over the help screens, however I don't quite understand this yet!!!!

Tom

    Matt
    Authorized Teaching Consultant
    Authorized Teaching Consultant
    Posts: 733
    Joined: Fri Dec 05, 2003 4:04 pm
    Location: Jacksonville, AL

    Post by Matt »

    Tom,

    In answer to question 1, you will need to add a second payroll deduction item to your Pastor's pay items for the additional withholding amount in order to get the system to calculate the withholding correctly. In answer to question 2, your pastor should give you a new W-4 form and specify how much additional Federal Tax he wants withheld from each check to cover the self employment tax he expects to owe.

    Matt

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