Payroll Contribution Deduction Error

[tena20719]

Hi! We just started offering the contribution deduction through payroll. I set up the item in payroll as "Contribution Deduction". The book said PC would automatically create a journal entry for the contribution. I just posted payroll and they aren't in the contribution module in either the unposted or posted contributions.

When I post payroll I only post to the contribution module because we make one entry in fund accounting to match our direct deposit withdrawals. Is this interfering with the contributions posting to the contributions module or am I doing something else wrong?

Thanks for your help.
Tena

[NeilZ]

Hi! We just started offering the contribution deduction through payroll. I set up the item in payroll as "Contribution Deduction". The book said PC would automatically create a journal entry for the contribution. I just posted payroll and they aren't in the contribution module in either the unposted or posted contributions.

When I post payroll I only post to the contribution module because we make one entry in fund accounting to match our direct deposit withdrawals. Is this interfering with the contributions posting to the contributions module or am I doing something else wrong?

Thanks for your help.
Tena

Did you add the Contribution Deduction to the employees item list in Payroll ?? Does each employee have an envelope assigned?

The Contributions will NOT appear in the Unposted Contributions, but should appear in the Posted Contributions for the employee with the date, amount and type of "Payroll Deduction" listed.

I don't know what you mean by

"When I post payroll I only post to the contribution module because we make one entry in fund accounting to match our direct deposit withdrawals." Please explain.

If you're paying by direct deposit, I'm assuming that you're only seeing a 'total' direct deposit withdrawal not per employee? How are you tracking any tax or other deductions if you're not posting to Funds Accounting. It is very easy to clear such withdrawals on the bank statement as the total there should match to the total from the checking account when you check off each employee's check in the reconciliation. I've been doing it that way for a few years.

In any case, if the paystub shows the deduction listed, and you're not posting to Funds Accounting, you are not: A) posting the income to the tithes and offerings income account, and B) not updating Contributions as its a direct update to the employee's contribution record.

[tena20719]

Hi Neil! Thanks for your quick response.

Yes, I used the Contribution Deduction in the employees items list in payroll.

Yes, each employee has an envelope assigned. It wouldn't allow me to post payroll without the envelope numbers being assigned.

I process payroll and post to the contributions module only. I receive a direct deposit report that I use to enter a manual check for the total net payroll checks amount. The 941 Tax Deposit report gives me the amount I need to pay to EFTPS. I pay that online and then enter a manual check for that amount. The 2 manual checks match exactly to the bank statement so it's easier to reconcile.

If I follow what you are saying, since I am posting to the contributions module only, the entries for the contribution deductions are not going to carry over to the contributions module? The program never asks if you want to post to the contributions module, it only asks for fund accounting.

I think this means that I will need to do a manual entry in the contributions module for those deductions made through payroll.

Thanks for your time and assistance!
Tena

[NeilZ]

Hi Neil! Thanks for your quick response.

Yes, I used the Contribution Deduction in the employees items list in payroll.

Yes, each employee has an envelope assigned. It wouldn't allow me to post payroll without the envelope numbers being assigned.

I process payroll and post to the contributions module only. I receive a direct deposit report that I use to enter a manual check for the total net payroll checks amount. The 941 Tax Deposit report gives me the amount I need to pay to EFTPS. I pay that online and then enter a manual check for that amount. The 2 manual checks match exactly to the bank statement so it's easier to reconcile.

Um ... if you're processing payroll, you're only posting to the Payroll module, not Contributions. From what account are you paying the taxes? Are you using the Employee salary account to pay?

Same with the Contributions, you're going to have to use the Employee's salary expense account to move funds from there to income.

If I follow what you are saying, since I am posting to the contributions module only, the entries for the contribution deductions are no going to carry over to the contributions module? The program never asks if you want to post to the contributions module, it only asks for fund accounting.

Again, you're not posting to contributions, you're posting to PAYROLL, two separate modules and databases.

If you use the Payroll system correctly, the system will automatically update the Contributions database but ONLY if you post to Funds Accounting, it will NEVER ask you to post to Contributions, as the funds would be transferred within the system, with no separate deposit.

I think this means that I will need to do a manual entry in the contributions module for those deductions made through payroll.

Thanks for your time and assistance!
Tena

Yes, you will have to enter a Contribution entry for each employee, then post those Contributions to CONTRIBUTIONS only. That updates their contribution record.

You'll then have to create a Transaction in Funds Accounting to move funds from each employee using the Contribution deduction from each employee's salary expense account (if you have those positions broken down by employee) and move it to the Tithes & Offerings (I'm assuming) income account.

[tena20719]

Good morning,

Sorry, I did write contributions module when I meant payroll module. In Power Church, the accounts payable module and contributions module always post TO fund accounting....fund accounting does not post to them. That is why when the payroll module asked me if I wanted to post TO fund accounting it did not occur to me that it also meant it would post to the contributions module. If fund accounting doesn't post to the other modules, why would it then post to the contributions one? This was the part I was trying to understand.

I will definitely make the contribution entries and just post them to the contribution module.

In the end, everything balances with the fund accounting module, the payroll module and the contributions module.

Thanks for your help!

[NeilZ]

Good morning,

Sorry, I did write contributions module when I meant payroll module. In Power Church, the accounts payable module and contributions module always post TO fund accounting....fund accounting does not post to them. That is why when the payroll module asked me if I wanted to post TO fund accounting it did not occur to me that it also meant it would post to the contributions module. If fund accounting doesn't post to the other modules, why would it then post to the contributions one? This was the part I was trying to understand.

I will definitely make the contribution entries and just post them to the contribution module.

In the end, everything balances with the fund accounting module, the payroll module and the contributions module.

Thanks for your help!

The Contributions update part of this apparently works this way when you post Payroll to Funds Accounting:
1. The system adds an entry to the Contributions record for the employee's envelope number.
2. Adds the amount to the total contributions to the Contribution Fund given to date
3. Does nothing else in Contributions so its not really a "post" in the usual sense of the term as used in Powerchurch
4. Adds a line to the Employee's Payroll transaction showing a deduction (credit) to the income account associated with the Contribution Fund the employee is giving to, thus reducing the final check amount.

Does this help?

[tena20719]

Yes it does....thanks bunches!