Hello Everyone,
I need help desprately. My pastor is suppose to be self-employed. He has asked us to pay his payroll taxes for him (SECA, Estimated tax ) as withholdings each pay period. He receives an auto allowance & housing allowance, monthly.
Curently I prepare an Excel spreadsheet to calculate these amounts. I am having trouble in trying to get PC+ V.9 to handle this properly. I know that part of my trouble is that I don't understand how PC+ handles the checked boxes in the payroll item module.
I created a payroll item for SECA 15.30%, however, I am not sure as to which P/R box needs to be checked. I believe that the housing allowance is taxed as to SECA only.
Help
Tom
Help with Payroll boxes
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The checked boxes only determine what amounts go in which boxes on the W2 form printed at the end of the year. They don't have anything to do with how the check itself gets calculated.
You may want to check with an accountant to verify what you're doing, but it sounds like you may be able to create a tax table with a range from 0 to 999999 taxed at a rate of 15.30%. Add that tax table to a witholding item, just as you'd do any other witholding. The problem may come in if you've got some items that get taxed and others that don't. In that case, it'll probably be best to calculate those things manually like you're doing, then just enter the amount in the item under Maintain Employee Pay Items. If you type "None" in the tax table box on the Change form, you'll be able to enter a manual amount.
Hopefully, that doesn't do more to confuse the issue.
You may want to check with an accountant to verify what you're doing, but it sounds like you may be able to create a tax table with a range from 0 to 999999 taxed at a rate of 15.30%. Add that tax table to a witholding item, just as you'd do any other witholding. The problem may come in if you've got some items that get taxed and others that don't. In that case, it'll probably be best to calculate those things manually like you're doing, then just enter the amount in the item under Maintain Employee Pay Items. If you type "None" in the tax table box on the Change form, you'll be able to enter a manual amount.
Hopefully, that doesn't do more to confuse the issue.