941 underpay and tracking

[whfpc]

Oh lord!! I promise one day I will get this! So, y position was vacant for a few months before I started (and this is my first rodeo in fund accounting) we had a few new hires (me included) and the person filling the shoes for payroll didn't take deductions out. I thought I corrected everything but for the 2nd and 3rd quarters we had to pay in. We pay our taxes every payday (2 times a month) so that part is correct, however I need to make the corrections on the employee's pay stubs right?

Robin

[NeilZ]

Oh lord!! I promise one day I will get this! So, y position was vacant for a few months before I started (and this is my first rodeo in fund accounting) we had a few new hires (me included) and the person filling the shoes for payroll didn't take deductions out. I thought I corrected everything but for the 2nd and 3rd quarters we had to pay in. We pay our taxes every payday (2 times a month) so that part is correct, however I need to make the corrections on the employee's pay stubs right?

Robin

OK ... were any of the taxes taken out of employee checks to cover the undeducted amounts? Was this done in payroll ??
In other words, how were the funds recovered?

Knowing how you covered the tax deductions would help.

And yes, taxes should be deducted by the system every payday if the system is setup correctly.

[whfpc]

yes, the taxes were taken out of the employee's pay (I believe I did this correctly but could have shorted one or two). For mine personally I didn't because it was only one check and I ASSUMED that since I pay in so much already and I normally get a refund skipping the first one wouldn't matter, insert first rodeo comment again here. Is there a way to verify just the three employees year to date on what was paid, where and if shorted where that would be found?

Robin

[NeilZ]

yes, the taxes were taken out of the employee's pay (I believe I did this correctly but could have shorted one or two). For mine personally I didn't because it was only one check and I ASSUMED that since I pay in so much already and I normally get a refund skipping the first one wouldn't matter, insert first rodeo comment again here. Is there a way to verify just the three employees year to date on what was paid, where and if shorted where that would be found?

Robin

You could run the Item Summary Report for the period Jan thru end of Oct, and have it summarized by employee.

Then open up the Maintain List of Employees go to each employee, multiply the correct tax deduction shown on their Pay Items by the number of paydays. If you paid twice a month, then there would be 20 paydays.

As long as there wasn't a salary adjustment in the middle of the period, you should come up with the amount that should have been withheld to the end of Oct. Plus or minus a few cents. Hopefully it should equal what the report shows. If not, you'll have to do an adjustment to withhold a bit. If the amount on the report is MORE than you figured, don't worry about it. They'll probably get it back when they file 2017 taxes.

Does this help??

[whfpc]

If the amount is less than, wouldn't they just pay it when they file 2017 or am I in another ball field all together on my thinking?

Robin

[whfpc]

And just to clarify, I would find the correct tax deduction information listed under pay items or is that percentage listed elsewhere? Can you give me an example? I am coming to a brain block

Robin

[NeilZ]

If the amount is less than, wouldn't they just pay it when they file 2017 or am I in another ball field all together on my thinking?

Depending on the amount, you could be liable for not withholding enough. I'm not sure what they use as basis to decide that.

And just to clarify, I would find the correct tax deduction information listed under pay items or is that percentage listed elsewhere? Can you give me an example? I am coming to a brain block

Robin

If you look at the Federal Withholding on the employee's pay item list, it would show you the correct deduction (again I'm assuming that its setup correctly now).

[whfpc]

When I look at the pay item some employee's have amounts for all line items and some have none?

[NeilZ]

When I look at the pay item some employee's have amounts for all line items and some have none?

You're only interested in the Federal Tax Withholding.

[whfpc]

I am sorry I wasn't clear. Some of the employee's have line items information and some do not, the ones that do not are also blank on Federal Tax Withholding as well

[NeilZ]

I am sorry I wasn't clear. Some of the employee's have line items information and some do not, the ones that do not are also blank on Federal Tax Withholding as well

If they are blank, are they hourly employees ? If so, you'll have to populate their salary tab with their usual hours. If not, are they still employed there?

[whfpc]

YES!! That's the problem, the salary folks were populated and the hourly folks were not. If their hours vary would I just calculate a certain number of hours and figure it out? Boy this is something else! Once I figure it out and find where to deduct and from which employee then the end of the 4th quarter I should probably see a refund for the church correct?

Robin

[NeilZ]

YES!! That's the problem, the salary folks were populated and the hourly folks were not. If their hours vary would I just calculate a certain number of hours and figure it out? Boy this is something else! Once I figure it out and find where to deduct and from which employee then the end of the 4th quarter I should probably see a refund for the church correct?

Robin

Well ... again, it depends. Are we also talking about SS & Medicare? In which case you would need to verify those amounts. The good news is that once you figure out the SS & Medicare for the employee, the employer amount is the same.

You may find that it comes out that you don't owe any additional or you may owe more as you can adjust the last set of withholdings.
If you overdeducted FITW, that will be a refund that comes to the employee when they file taxes.

If the church overdeducted SS & Medicare, as well as overpaid the employer's share, you will need to talk to the IRS to find out how the church can get a refund.

[whfpc]

I will check all the numbers and let you know!!!! Thanks so much for your help!!

Robin