Pastor salary

[jnsilva]

Pastor took a cut in salary due to finances. A member has made a contribution and designated a portion be given to the Pastor to supplement his income. Since they stated the amount they want to go to the pastor as salary (which is not tax deductible to donor) how do I enter the transaction to income? I want to put the payment in the payroll modular since it is for salary. Do I need to add another catagory or just pay from his regular pay line?

[NeilZ]

Pastor took a cut in salary due to finances. A member has made a contribution and designated a portion be given to the Pastor to supplement his income. Since they stated the amount they want to go to the pastor as salary (which is not tax deductible to donor) how do I enter the transaction to income? I want to put the payment in the payroll modular since it is for salary. Do I need to add another category or just pay from his regular pay line?

FWIW .. there's no one way to do this. What I would do follows:

Since this is a donor restriction, I would create a Temp Restricted Fund under the Maintain List of Donor Restrictions function of Funds Accounting. Follow the 'assistant' through the steps, but you do not need to include an expense account. Then add a new Contribution Fund in Contributions pointing to the Temp Restricted INCOME account, but do not check the Include fund on statements box, as direct support of a person is not tax deductible. Enter the amount the donor designated using this new Contribution Fund. The side-effect of this is that if others decide to contribute, you have a place to put those funds.

Pay the pastor as normal, but after you post payroll to Funds Accounting, go into the Unposted Transactions function, locate the payroll transaction, then click on the Release Restricted Funds button. Select this new fund from the list, and then enter the amount that you will use to make up the difference between the old salary amount and the new salary amount.

This will create the proper transactions and show the linkage.

The downside is that you will reflect an 'overbudget' condition on the Pastor's salary expense. However the YTD restricted fund release total should reflect the amount that the salary account is overbudget.