User Support Forum

My 941 report is not equaling my deposits and I think I have figured it out but I'm sure how to fix it.

I created a new item in December the Christmas bonus checks. I set it up to be taxable for SS & Medicare but I unchecked it on the check for our pastor since it doesn't take out SS. Is there any way to fix this since I have already posted the checks in December?

Thanks!

northside wrote:My 941 report is not equaling my deposits and I think I have figured it out but I'm sure how to fix it.

I created a new item in December the Christmas bonus checks. I set it up to be taxable for SS & Medicare but I unchecked it on the check for our pastor since it doesn't take out SS. Is there any way to fix this since I have already posted the checks in December?

Thanks!

FWIW .. it should be taxable for FITW, and pastors are self-employed so it shouldn't be taxable for SS & Medicare.

Is the 941 LESS than the deposit, or MORE ?? There is also the issue of W2s and any corrections needed there. You don't have much time to get this sorted.

My SS wages are more on my 941 which makes me owe more taxes that I paid on the tax deposit.

Can I just change the wages and take out the Christmas bonus for the pastor out of the wages, then my report will match by deposits?

northside wrote:My SS wages are more on my 941 which makes me owe more taxes that I paid on the tax deposit.

Can I just change the wages and take out the Christmas bonus for the pastor out of the wages, then my report will match by deposits?

OK .. this is easy since it will only affect the Payroll module. As I'm assuming based on what you said that the pastor did not have any SS or Medicare taxes deducted. This will take care of your issue, and will make sure it won't happen in future. Plus it creates the proper audit trail.

I'm also going to assume, since you've not said, that you're using v11 or 12. Before doing any suggested steps, do a Powerchurch Backup of the Accounting Files using the Powerchurch backup utility.

1. Head to the Payroll Menu -> Maintain List of Employees
2. Find the pastor's record in the list, selec the CHECK HISTORY tab
3. Find the check with the bonuses and highlight that, then click on the X button below the list. We're going to void that check in Payroll.
4. When the popup appears say the check will be voided, it will give you a chance to Reissue the check. DO NOT check that box, just click OK.
5. Go to the Maintain Item Descriptions, and create a SEPARATE Christmas Bonus income item for the pastor. I'm guessing that this is what you didn't do, which is why its being seen. Select the MORE OPTIONS selection from the pulldown menu. Only select the taxes that will affect this, I'm assuming FITW and any state or local income taxes.
6. Go back to the Maintain List of Employees, and add the Pastor's bonus item to his pay item list. Enter the amount of the bonus there.
7. Run Payroll for that pay period, and set the check date to the date of the original check. Only include the pastor in this payroll run. when you get to the VERIFY payroll screen, do a review of the deductions by clicking the CHECK DETAIL button, and if all are correct then select MANUAL CHECK from the Payment Method, and enter the check number you voided.
8. Then click on FINISH, and print the paystub at the final screen.
9. Now POST PAYROLL .. but select Post of Payroll Module Only as the Posting Option.

Then run your 941 .. it should now properly reflect the report.

Thanks so much! It worked perfectly! I have never noticed the post payroll module only.

You are amazing! Thanks for your help!!