Need to create paystubs for EFT transfers.

[dishman2000]

so I'm trying to figure out how I can print a "dummy" pay stub for someone that I'm transferring money from the church bank account to their bank account for payroll. One of my Pastors is wanting "pay stubs" to give to a bank for proof of income because he's purchasing a house and needs documentation of income. We've just been transferring money from the Bank Account to his Bank Account for a couple of months now on pay days. Am I doing this wrong? I can create what amounts to "Pay Stubs" for him, but I would rather have something from PowerChurch that matches the bank transactions. I only have 3 "employees", so I really don't want to pay for a Direct Deposit vendor to manage this for us when I can just transact through "Online Banking". I saw a couple of posts about Direct Deposit, but they all seemed to reference an outside vendor processing payroll for a fee. I'm currently writing "manual checks" to record the transaction in PowerChurch and the only split for our Pastors is "Cash Pay" and "Housing Allowance".

[NeilZ]

so I'm trying to figure out how I can print a "dummy" pay stub for someone that I'm transferring money from the church bank account to their bank account for payroll. One of my Pastors is wanting "pay stubs" to give to a bank for proof of income because he's purchasing a house and needs documentation of income. We've just been transferring money from the Bank Account to his Bank Account for a couple of months now on pay days. Am I doing this wrong?

YES .. completely. How do you create W-2s for the Pastor? The Pastor still has to pay taxes one way or the other, and the W-2 is required at the end of the year.

What you should do is use the Payroll module. It does all the proper deductions (if any) for both the employees and the congregation, and then you have a proper documentation of everything.

You setup Payroll so that the Pastor gets paid by direct deposit. While what you are doing is not precisely direct deposit using a NACHA file, its still effectively the same thing. Here's how I have one of the employees setup for this:



Note while the payment method is set as Direct Deposit the employee's bank account information is not entered, because I basically do the same thing you're doing though our bank's online bill paying system.

I can create what amounts to "Pay Stubs" for him, but I would rather have something from PowerChurch that matches the bank transactions. I only have 3 "employees", so I really don't want to pay for a Direct Deposit vendor to manage this for us when I can just transact through "Online Banking". I saw a couple of posts about Direct Deposit, but they all seemed to reference an outside vendor processing payroll for a fee. I'm currently writing "manual checks" to record the transaction in PowerChurch and the only split for our Pastors is "Cash Pay" and "Housing Allowance".

When you process payroll, the payroll review page looks like this:



It reflects that the employee is paid by direct deposit, when you then click on the next button, the following page will give you the opportunity to print pay stubs.

The paystub will look like this:



Note, I do process income tax withholding for the pastor in question. You may ask why, this gives the pastor the freedom to not have to worry about setting aside funds to cover Federal taxes and, if enough is taken out, to cover SECA taxes. I also withhold state taxes for the same reason. Also note that the salary and housing allowance are separate, again this is for the W-2 as you need to reflect the housing allowance separately for Federal Income and SECA taxes.

Then at the end of the year you can just print the W-2s directly from the system.

Does this help?

[dishman2000]

Yes! Exactly what I need! Our previous Pastor had us deduct his quarterly "Self Employment Taxes" from his paycheck every quarter, but my current Pastors choose to do this themselves. Thanks for the input, I knew there was a better way - I just didn't know what happened when I selected "Direct Deposit" in setting up an Employee since it was asking for Bank Routing and Account information.

[NeilZ]

Yes! Exactly what I need! Our previous Pastor had us deduct his quarterly "Self Employment Taxes" from his paycheck every quarter, but my current Pastors choose to do this themselves. Thanks for the input, I knew there was a better way - I just didn't know what happened when I selected "Direct Deposit" in setting up an Employee since it was asking for Bank Routing and Account information.

You should be able to leave that blank, if not, set up for 'check', then when fully setup, go and change that from check to Direct Deposit on the employee record.

[dishman2000]

Just ran a "sample" paycheck stub and feel really foolish that I haven't been "Running Payroll" for a couple of months when we started using Online Banking to pay our Pastors. We lost our Financial Secretary and I've been filling back in as Treasurer of the church. I set up PowerChurch originally, but haven't been entering detailed info in quite a while, so I'm a little rusty.

The sample pay stub worked perfectly and the Direct Deposit payment method prevented a paper check from being printed. Thanks so much for the help!

Jay

[NeilZ]

Just ran a "sample" paycheck stub and feel really foolish that I haven't been "Running Payroll" for a couple of months when we started using Online Banking to pay our Pastors. We lost our Financial Secretary and I've been filling back in as Treasurer of the church. I set up PowerChurch originally, but haven't been entering detailed info in quite a while, so I'm a little rusty.

The sample pay stub worked perfectly and the Direct Deposit payment method prevented a paper check from being printed. Thanks so much for the help!

Jay

You're welcome !

[dishman2000]

So, everything is working great with running payroll for direct deposit, but I would like to run the Paycheck Stub report so each employee is on a separate page (so I can give them a copy or email it). I just printed a "Payroll Item Summary Report" for one individual, but that report shows what items are "employer liability" items and frankly doesn't look like a "pay stub with deductions". Is there a way to force the Print Payroll Stubs to show on a separate page for each employee, or do I have to copy it and scan it back in with just that employee's data on it.

Jay

[NeilZ]

So, everything is working great with running payroll for direct deposit, but I would like to run the Paycheck Stub report so each employee is on a separate page (so I can give them a copy or email it). I just printed a "Payroll Item Summary Report" for one individual, but that report shows what items are "employer liability" items and frankly doesn't look like a "pay stub with deductions". Is there a way to force the Print Payroll Stubs to show on a separate page for each employee, or do I have to copy it and scan it back in with just that employee's data on it.

Jay

Go to the File -> Preferences -> Accounting Setup menu, then the Payroll tab. Look for the 'When Printing Paystubs, and select the 1 per page radio button.