How do we set up a stipend received from another church?
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How do we set up a stipend received from another church?
Our Pastor has received a Love gift / stipend from another church in a form of a check. What is the best way to set this up in Powerchurch so our Pastor will be paid through our church? This stipend will be then added to his W2.
Re: How do we set up a stipend received from another church?
Was the check written out to the Pastor or the Church? If it was written out to the pastor, all he really needs to do is declare it as additional income on his 2018 Tax Return, it does not need to be added as a W2 item.Cam C. wrote:Our Pastor has received a Love gift / stipend from another church in a form of a check. What is the best way to set this up in Powerchurch so our Pastor will be paid through our church? This stipend will be then added to his W2.
If it was written out to the church, you need to reflect that as income somewhere. I'd put it under any miscellaneous income section of the Chart of Accounts.
Then create an income pay item for the pastor. The default Powerchurch chart of accounts includes a Christmas Bonus expense account, you could use this to cover the expense, or create a new expense account for this purpose. Select that expense account to in the pay item.
When you create the two accounts (income & expense) you may want to add a subaccount number (I'd use something like a 700 series if not being used) to the two accounts so that they're tied together for reports. When you run the subaccount report from Funds Accounting it will show the income and the expense so your church board/auditors can see that what came in, went out.
For example, the income account would be : 01-4630-700, and the Expense would be 01-5034-700.
Does this help?
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: How do we set up a stipend received from another church?
Hi Neil, almost there, thank you for your help.
We created the accounts successfully. How do we record now his check which was made to our church? In AP?
We created the accounts successfully. How do we record now his check which was made to our church? In AP?
Re: How do we set up a stipend received from another church?
Sorry, I meant in AR?
Re: How do we set up a stipend received from another church?
Accounts Payable ?? No you would process the deposit by creating a transaction in Funds Accounting. DEBIT checking, and CREDIT the income account.Cam C. wrote:Hi Neil, almost there, thank you for your help.
We created the accounts successfully. How do we record now his check which was made to our church? In AP?
If you want to, you can create a Contribution Fund for office use using the new income account, and enter the data there. You can create an envelope for the donating church, and then send them a statement from the system if you want.
UPDATE: Not in AR either ... you're not receiving anything for an item or service, UNLESS this is going to be a recurring type of service. If so, you can use AR, but I think that would complicate matters.
Neil Zampella
Using PC+ since 1999.
Using PC+ since 1999.
Re: How do we set up a stipend received from another church?
Neil, thank you for all your help.