Adding Non-Payroll Addition to Paycheck

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tena20719
Posts: 68
Joined: Tue Oct 21, 2008 4:52 pm

Adding Non-Payroll Addition to Paycheck

Post by tena20719 »

Hello. Can anyone tell me if there is a way to add an item to someone's paycheck that is not considered a payroll item?

For instance, I may need to reimburse someone for a purchase they made. I would usually do a check through Accounts Payable and then do their payroll check through Payroll. Is there a way to just handle the reimbursement through payroll and only do one check?

This would come in handy because everyone uses direct deposit for their payroll and it would save them a trip to the bank to deposit their reimbursement check.

I definitely want to make sure that the addition does not show up anywhere on the W-2 or quarterly report.

Thanks bunches!
Tena

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Adding Non-Payroll Addition to Paycheck

Post by NeilZ »

tena20719 wrote:Hello. Can anyone tell me if there is a way to add an item to someone's paycheck that is not considered a payroll item?

For instance, I may need to reimburse someone for a purchase they made. I would usually do a check through Accounts Payable and then do their payroll check through Payroll. Is there a way to just handle the reimbursement through payroll and only do one check?

This would come in handy because everyone uses direct deposit for their payroll and it would save them a trip to the bank to deposit their reimbursement check.

I definitely want to make sure that the addition does not show up anywhere on the W-2 or quarterly report.

Thanks bunches!
Tena
You can do that. We have something setup to cover our minister's travel mileage. That said, it will show up on the payroll quarterly report if you use the default report. You can give this item a number outside of your normal numbers and then exclude it from the Payroll Quarterly report. If you use numbers 1 thru 950, you can set this up as item # 999.

To do this you HAVE to create a pay item as type INCOME. You have no choice in this matter. However, you then set the Tax options: to Non-taxable. It will not show up on the W2, but it will show up on pay stubs. The only problem is that if you do this, and the various employees buy items for different areas of the church, then the expense account as listed on the pay item would have to be changed. Or you'd have to create a number of different pay items for the various areas/ministries such as :
991 - Worship Ministry Reimbursements
992 - Christian Ed Reimbursements

and so on.

It can be more trouble than its worth in this case :)
Neil Zampella

Using PC+ since 1999.

tena20719
Posts: 68
Joined: Tue Oct 21, 2008 4:52 pm

Re: Adding Non-Payroll Addition to Paycheck

Post by tena20719 »

Thanks Neil....you are always such a big help! I really appreciate it.

Thanks!
Tena

neac
Posts: 68
Joined: Mon Jan 28, 2019 8:26 am

Re: Adding Non-Payroll Addition to Paycheck

Post by neac »

Hi,

I would like to do this with employee reimbursements too. I am in Canada so I don't have to worry about the tax stuff since we have to do all our tax things manually outside of Powerchurch.
My question is, is there a way that powerchurch can recognise when an entry is made in accounts payable, that the person being paid is an employee, and forward the reimbursement to the payroll module?
If not, could you provide an example of what entries would need to be made in the different modules for this to work?
The second option of having different pay items for different reimbursements will probably work better for me.

NeilZ
Posts: 10209
Joined: Wed Oct 08, 2003 1:20 am
Location: Dexter NM
Contact:

Re: Adding Non-Payroll Addition to Paycheck

Post by NeilZ »

neac wrote:
Fri Sep 18, 2020 8:41 am
Hi,

I would like to do this with employee reimbursements too. I am in Canada so I don't have to worry about the tax stuff since we have to do all our tax things manually outside of Powerchurch.
My question is, is there a way that powerchurch can recognize when an entry is made in accounts payable, that the person being paid is an employee, and forward the reimbursement to the payroll module?
No, it doesn't do that.
If not, could you provide an example of what entries would need to be made in the different modules for this to work?
The second option of having different pay items for different reimbursements will probably work better for me.
Here's the thing. You HAVE to make sure that the proper ministry budget account is used for this. This does mean that if the pastor or employee purchased something for a ministry that does not have a Payroll Item Description setup for it, you'll have to create a new one.

If you have no problems with having to do that, then that option is viable. However ....

I've come to the conclusion that writing a separate check in AP to reimburse the employee gives a better audit trail than doing what I suggested FOUR years ago.

Even more, if your employees are constantly purchasing items and having to get reimbursed for it, it would be better to get a corporate credit card account that requires each employee to fill out a request for card in their name, with all charges showing up on one bill that comes to the office.

Each time the employee purchases an item they would need to bring the receipt to the office, which would then be entered as a AP Manual Check transaction, with the CREDIT entry being the Credit Card Liability account, rather than the checking account; and the DEBIT entry the proper ministry expense account. You can also then track the vendor being used in the AP history.

Then when the bill arrives, you basically do a reconciliation against the bill and the entries to the credit card liability account, and write the check to the credit card company using the credit card liability account as the DEBIT and the checking account as the CREDIT as normal.

In this way there will be less reimbursements, and greater audit tracking.
Neil Zampella

Using PC+ since 1999.

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