User Support Forum

How can I take out a tithe contribution from the employees paycheck and have it entered into their contribution records?

santoheath wrote:How can I take out a tithe contribution from the employees paycheck and have it entered into their contribution records?

In versions 11.1 & 11.5 you would add a new payroll items throught the Maintain Item Descriptions module in Payroll. You would create the item, then add the item to the employee under the Maintain List of Employees module. You'd go to the pay items tab, click on the Add button, select the item type of Contribution Deduction, click Next then continue. Its fairly easy from then on.

If you're using v10.4, I'm trying to recall if there was a way to do this automatically in that version. Off the top of my head, I'm going to say no, as the payroll system was completely revamped in v11.x.

Is tithe contribution a taxable pay item?

ranchmom wrote:Is tithe contribution a taxable pay item?

There is nothing taxable about a tithe coming out of someone's pay. Its already been taxed. What version of Powerchurch are you using.

NeilZ wrote:

ranchmom wrote:Is tithe contribution a taxable pay item?

There is nothing taxable about a tithe coming out of someone's pay. Its already been taxed. What version of Powerchurch are you using.

I'm using v11. I have it set up as a contribution but was unsure if it was subect to federal taxes since it was income for the employee.

ranchmom wrote:

NeilZ wrote:

ranchmom wrote:Is tithe contribution a taxable pay item?

There is nothing taxable about a tithe coming out of someone's pay. Its already been taxed. What version of Powerchurch are you using.

I'm using v11. I have it set up as a contribution but was unsure if it was subect to federal taxes since it was income for the employee.

I'm not sure how a contribution is income to the employee. A contribution is income to the church, it may pay the person's salary, but it is NOT direct income to that person.

V11.x allows you to setup a contribution deduction directly to that person's envelope number, using a Contribution Deduction pay item. This is a special Payroll Item that needs to be created in the Maintain Item Descriptions function of Payroll.

[quote="NeilZ"][quote="ranchmom"][quote="NeilZ"][quote="ranchmom"]Is tithe contribution a taxable pay item?[/quote]

There is nothing taxable about a tithe coming out of someone's pay. Its already been taxed. What version of Powerchurch are you using.[/quote]

I'm using v11. I have it set up as a contribution but was unsure if it was subect to federal taxes since it was income for the employee.[/quote]

I'm not sure how a contribution is income to the employee. A contribution is income to the church, it may pay the person's salary, but it is NOT direct income to that person.

V11.x allows you to setup a contribution deduction directly to that person's envelope number, using a Contribution Deduction pay item. This is a special Payroll Item that needs to be created in the [i]Maintain Item Descriptions[/i] function of Payroll.[/quote]


Thanks. That makes more sense. I guess I was thinking of it as them getting paid and then paying their tithe from the total income. Just want to make sure I'm reporting things properly.

I am reading this thread and am a little confused about how this question is being asked. The contribution is taken out of the employees gross pay so in that sense it is taxable income. It almost seems like you are dealing with this apart from the employees gross income and listing it as a separate income item then deducting it as a contribution. Am I reading the question wrong?

tborgal wrote:I am reading this thread and am a little confused about how this question is being asked. The contribution is taken out of the employees gross pay so in that sense it is taxable income. It almost seems like you are dealing with this apart from the employees gross income and listing it as a separate income item then deducting it as a contribution. Am I reading the question wrong?

Tom,

I think she wasn't sure on how to create the pay item. The contribution is not income it is a deduction from their income. As I mentioned, there is a specific pay item type that handles this correctly.