Payroll tax overcollection and refund employyes

[tfitch]

Hello,
The payroll tables had not been changed which has resulted in federal payroll taxes being over collected in the first two quarters of 2023. I was wondering the easiest way to refund the overcollection to the employees and having the W-2's show the correct amount for 2023. I know I have to file a 941-X.

Should I create a line item on an employees check that refunds that overcollection?

I'm still not familiar/comfortable enough with PowerChurch, so I apologize for some of my questions recently.

Thank you,
Maurice

[NeilZ]

Hello,
The payroll tables had not been changed which has resulted in federal payroll taxes being over collected in the first two quarters of 2023. I was wondering the easiest way to refund the overcollection to the employees and having the W-2's show the correct amount for 2023. I know I have to file a 941-X.

Should I create a line item on an employees check that refunds that overcollection?

I'm still not familiar/comfortable enough with PowerChurch, so I apologize for some of my questions recently.

Thank you,
Maurice

FWIW ... I wouldn't do anything going forward, just correct the table for the rest of 2023, then update it for 2024. If the taxes were overpaid, the employees can claim them as part of the refund.

[tfitch]

Neil,

I did correct the table after the first two quarters of 2023. It isn't a lot of money.

It would be easier to just let them get the funds as a tax return. Never liked doing a 941-X.

Thank you,

Maurice

[tfitch]

I was directed to pay employees back and to file a 941-X.

How would I accomplish paying employees back and ensuring W-2's are correct.

Thank you!

Maurice

[NeilZ]

I was directed to pay employees back and to file a 941-X.

How would I accomplish paying employees back and ensuring W-2's are correct.

Thank you!

Maurice

Its not easy ... the 941-X will be a completely manual process, that you'll have to read the instructions for that form for the entries. As far as the Payroll system, you'll have to adjust everything WITHIN Payroll as that is the database from which the W-2s are created.

I've never done this, as the finance committee for the churches I've worked with, saw that it was easier for the employees just to claim the refund. I really can't give you any advice on this. I'll refer this to a tech.

[Zorak]

To adjust the amounts in Payroll, you can Process Payroll, using a check date within the quarter you want the changes to take effect.

When on the Verify Payroll step, select each employee and click the Check Detail button. On the window that opens, uncheck the option in the far left column on all of the payroll items except those that you are wanting to adjust. Double click an item to edit it and in the window that opens, change the Tax Table field to "<Manual Amount>" and enter the amount you need to refund as a negative number for that employee for that item.

With only negative deductions processing on the check, PowerChurch is going to treat that like it is income and will allow you to print checks.