User Support Forum

In 2016, part of our pastor's compensation will include the church paying a set amount to an HSA that the denomination administers.

I've looked within this forum (and called tech support) and found the idea of setting this up as a taxable benefit with no taxes checked. This appears as though it will allow our contribution to flow to his year-end W-2 and our contribution to be reported in box 12 with a code of "W".

However, I'd like to be able for this amount to both flow to a liability and expense account that I can use when I pay the denomination monthly. Do I accomplish this by establishing an accompanying Employer Liability for that amount?

Lastly, I'd like this to show up in Fund Accounting as part of the pastor's "salary". Will the above actions cause this to happen?

I've only been in this job / a PowerChurch user since November so this is all still pretty confusing to me.

Thanks for your help. I can't imagine that somebody else out there is doing this arrangement.

LynnR wrote:In 2016, part of our pastor's compensation will include the church paying a set amount to an HSA that the denomination administers.

I've looked within this forum (and called tech support) and found the idea of setting this up as a taxable benefit with no taxes checked. This appears as though it will allow our contribution to flow to his year-end W-2 and our contribution to be reported in box 12 with a code of "W".

However, I'd like to be able for this amount to both flow to a liability and expense account that I can use when I pay the denomination monthly. Do I accomplish this by establishing an accompanying Employer Liability for that amount?

Lastly, I'd like this to show up in Fund Accounting as part of the pastor's "salary". Will the above actions cause this to happen?

I've only been in this job / a PowerChurch user since November so this is all still pretty confusing to me.

Thanks for your help. I can't imagine that somebody else out there is doing this arrangement.

You setup the Employer liability for this in much the same way you set it up for the Employer matching Social Security. You create the Payroll Item Description using the Employer Liability option, and on that setup window, you select the liability and expense accounts to debit & credit. If you don't have a liability account already setup, you can add one in that window..

Then you add a new Pay Item for the employee, select the Employer Liability, and then enter the amount that will be set aside each pay period. Click the Finish button on that window, and you're done.