Payroll Problem

Fund Accounting, Accounts Payable, Accounts Receivable, Payroll

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liberty3195
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Joined: Thu Aug 09, 2018 8:54 pm

Payroll Problem

Post by liberty3195 »

We are new to PC 12 and just starting to use the program as of Jan. 1st. The church directly pays for a life insurance policy for the Pastor. This prepaid item needs to be added into his salary each month but not printed on the paycheck. PC 12 adds the item to salary with no problem but on the after tax deduction side of the entry it removes the amount from his salary which defeats the whole purpose of adding it in. Is there a way in PC 12 to add to salary and do a deduction to keep that amount from actually printing on the pay check? Our old accounting program handled this type of entry easily but I can find no way to do it in PC 12.

Zorak
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Re: Payroll Problem

Post by Zorak »

There is a separate item type called "Taxable Benefit" that will report that amount as taxable income on the W2, but isn't actually money processing on the check.

liberty3195
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Joined: Thu Aug 09, 2018 8:54 pm

Re: Payroll Problem

Post by liberty3195 »

The firm that helped setup PC 12 has that income item checked to be Clergy Salary so if I understand you correctly I would only need to change that to Taxable and then I would be able to add the life insurance to salary and not have to do an after tax deduction at all?

Zorak
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Re: Payroll Problem

Post by Zorak »

It sounds like the Pastor's salary item needs to be left as Clergy Salary, you just don't need to add the amount of this insurance into the salary, since it isn't money that is actually processing on the check.

Instead, you would add a new item under Accounting > Payroll > Setup on the Maintain Item Descriptions screen. Click the Add button and when it prompts you for the type of item to add, choose Taxable Benefit. That is where you will record the insurance amounts.

liberty3195
Posts: 6
Joined: Thu Aug 09, 2018 8:54 pm

Re: Payroll Problem

Post by liberty3195 »

Tried just changing the type to taxable and adding in the amount. It printed the amount on the check so there must need to be a deduction of some type done to keep that amount from being added to the check. Not easy learning a new program and trying to figure out how to do something like this.

liberty3195
Posts: 6
Joined: Thu Aug 09, 2018 8:54 pm

Re: Payroll Problem

Post by liberty3195 »

Just saw your reply about a different entry place. Will see if I can figure it out....being unfamiliar with the program is a real hindrance on something like this.

liberty3195
Posts: 6
Joined: Thu Aug 09, 2018 8:54 pm

Re: Payroll Problem

Post by liberty3195 »

Made the taxable benefit entry for the life insurance. Can't find how to make the entry to it. It doesn't show on the check window and help doesn't explain how to make entries to taxable benefits that I can find.

liberty3195
Posts: 6
Joined: Thu Aug 09, 2018 8:54 pm

Re: Payroll Problem

Post by liberty3195 »

Thanks....figured it out.

Zorak
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Re: Payroll Problem

Post by Zorak »

Sorry I wasn't able to get back to this thread in time, but I'm glad you got it figured out!

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