Withholding Social Security Tax

[CortneyB]

I've just been hired on by a church that doesn't withhold social security tax. I know for pastoral staff it shouldn't be withheld but for all other staff, it should be. Most of the staff has an additional amount withheld to cover what they owe for social security tax. I would like to change it in the system so that social security is automatically taken out. How do I do this? I am not at all familiar with power church software so I want to be sure I am doing it all correctly.

[NeilZ]

I've just been hired on by a church that doesn't withhold social security tax. I know for pastoral staff it shouldn't be withheld but for all other staff, it should be. Most of the staff has an additional amount withheld to cover what they owe for social security tax. I would like to change it in the system so that social security is automatically taken out. How do I do this? I am not at all familiar with power church software so I want to be sure I am doing it all correctly.

First off, what version of Powerchurch are you using?

I'm assuming that you're using the Payroll module, right ?? If so, Powerchurch does install some defaults that make it easier. Conce setup, the system will compute the amount of taxes to withhold.

If you're using version 11.5, you should have access to a copy of the Powerchurch 11.5 manual, located in the C:\powerchurch\pcplus115 directory. The file is pcplus115.pdf.

Trying to give a step-by-step walkthrough of setting up for SS & Medicare would take a lot of time and basically reproduce what's already in the manual so I'll just list what you need to check for, then you can come back with specific questions.

1. As mentioned, when first using Powerchurch in Payroll the system usually sets up needed accounts in Funds Accounting, as well as the tax tables for Federal Income Tax as well as Social Security & Medicare. Check to see if these tables are there Accounting -> Payroll -> Setup -> Maintain Tax Tables . Usually there is one table for Social Security and one for Medicare since the employer pays the same amount as the employee. Here's a knowledgebase article that gives you information how to update these: https://www.powerchurch.com/support/140 ... tax-tables


2. There may (or may not) be Pay Items setup for Social Security & Medicare. Now there should be SEPARATE pay items for Employee and Employer Social Security deductions as well as separate ones for Medicare: Check Accounting -> Payroll -> Setup -> Maintain Item Descriptions to see if they are there. These pay items are different as the employer pay item has two accounts attached to it, one being the Social Security liability account (usually installed as 2217-000) which is also used by the employee pay item. The other is the employer Payroll Taxes expense account.

3. You would then add these Pay Items to each employee, an employee and employer, the same as the other pay items shown for each employee. You do that by heading to Accounting -> Payroll -> Maintain List of Employees on the Pay Items tab.

You're going to have questions, please ask.