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403b match for pastor

Posted: Sat Nov 11, 2017 11:52 am
by tborgal
I am setting up a 403b match of 3% of total salary for our pastor and have run into am wondering why the match only calculates against taxable income? It does not calculate against the Housing Allowance. Is there a way to for the Other Deduction option to calculate against all or selected income fields?

Re: 403b match for pastor

Posted: Sat Nov 11, 2017 3:37 pm
by NeilZ
tborgal wrote:I am setting up a 403b match of 3% of total salary for our pastor and have run into am wondering why the match only calculates against taxable income? It does not calculate against the Housing Allowance. Is there a way to for the Other Deduction option to calculate against all or selected income fields?
Check this thread ..

https://www.powerchurch.com/forum/viewt ... 03b#p41557

The normal way to do this is:

1. As I mention in the thread above, this is an employer liability, not an 'other deduction'.
2. Set up the item description of '403b Match'.
2. Add the employer liability pay item to the employee, and select Percent, and enter the percentage

However, I'm not sure that it will include the Housing Allowance as part of that so you may need to create a 'tax type' of Employer Match. Create a "tax table" for that tax type, and then when adding the item description for the employer liability uncheck the 'non-tax' checkbox, and select the 'tax type' of Employer match.

Then go to the Salary and Housing Allowance item descriptions, and if they're not already setup to use the More Options tax options, do that, and uncheck all the tax boxes that do not apply, but make sure the 'tax' of Employer Match is selected.

Yes its a work around, but it should work.

Re: 403b match for pastor

Posted: Sat Nov 11, 2017 6:54 pm
by tborgal
Thanks Neil I will give it a try.