User Support Forum

I searches through about 1/3 of the Payroll-related questions and can't seem to find this one.
I am using PC+ version 12.2 and have been a PC+ user for about 12 years.

I have 2 Funds set up - Operating and MMO (daycare). I also have one employee who is paid from both funds. I have one bank transaction for her direct deposit that I paid from the Operating fund for both accounts - $150 from one and $150 from the other (less taxes). But I have processed the payroll in each fund so when I reconcile, the Operating fund has $150 too much withheld and the MMO fund has $150 less withheld. If I simply transfer the money from one account to the other, I lose the detailed expense information.

Any suggestions? June was the first month I've done that (she just started getting paid from the second fund) but you'd better believe that she will get 2 checks in July!

bjwhitson wrote: ↑

Wed Jul 08, 2020 12:52 pm

I searches through about 1/3 of the Payroll-related questions and can't seem to find this one.
I am using PC+ version 12.2 and have been a PC+ user for about 12 years.

I have 2 Funds set up - Operating and MMO (daycare). I also have one employee who is paid from both funds. I have one bank transaction for her direct deposit that I paid from the Operating fund for both accounts - $150 from one and $150 from the other (less taxes). But I have processed the payroll in each fund so when I reconcile, the Operating fund has $150 too much withheld and the MMO fund has $150 less withheld. If I simply transfer the money from one account to the other, I lose the detailed expense information.

Any suggestions? June was the first month I've done that (she just started getting paid from the second fund) but you'd better believe that she will get 2 checks in July!

Using two checks is a easy way to take care of the issue. Probably the easiest to do as it keeps the two funds completely separate, which is better for an audit trail. However, if the Daycare has its own Tax ID, then you are probably required to keep them separate, along with issuing separate W-2s.

the daycare doesn't have its own tax ID. What I'm trying to figure out now is how to remedy this without reentering all of June data - which I've already done once. I"m afraid that it will negatively impact the W-2 for this employee if I don't get this right.

bjwhitson wrote: ↑

Wed Jul 08, 2020 7:02 pm

the daycare doesn't have its own tax ID. What I'm trying to figure out now is how to remedy this without reentering all of June data - which I've already done once. I"m afraid that it will negatively impact the W-2 for this employee if I don't get this right.

Yeah ... I'm trying to figure out a way that you can show the expense in the Daycare, and do all the calculations for the W2 in the operating.

I'm looking at suggesting that you do something along the lines of a modified 'credit card' liability setup. Where you debit the daycare salary account, and credit a liability account. You would then transfer that to the operations fund, and use a transaction to move the funds from a liability to a new income account. Thus daycare shows the expense, and operations shows the income, which is then used to help pay the salary.

Let me think on this

Thanks, Neil,
This has me stymied.
Betsy

As I see it, there are really two options to process this easily.

1. Process the full paycheck out of the general fund, then enter a transaction once a month to "transfer" the checking and expense figures into the daycare fund. That transaction would essentially be reversing $150 of the original transaction out of the general fund and into the daycare fund.

2. Set up two separate employee records, one that is paid from the general fund and the other for the daycare fund. PowerChurch will combine the two employees together at tax time, if the Social Security Number is the same. The only downside to this is if the employee normally makes enough money to have Federal Withholding or State Withholding, if your state uses tax bracket method tables, splitting the income in half could put them into a lower tax bracket or below the bottom bracket into the 0% calculation. In that situation, you would hard-code the withholding amount, so that the tax tables aren't used to calculate the half-income figures.

Hi Zorak,
I like that second option. It eliminates the need to transfer funds back and forth which is what usually gets me out of balance. I didn't know that the tax module would add the two records together. I think I'll try that one and hope that my side records (which I use to verify the Form 941 each quarter) will be validated by PC+.

So here's where I am - I've paid $150 from fund 01 (operating) and it should be from fund 02 (daycare or MMO). This is the transaction I have so far -
02-1130-000 MMO Checking CR $150.00
02-9200-100 Transfer from other funds DR $150.00
01-1110-000 Operating checking DR $150.00
01-9100-100 Transfer from other funds CR $150.00

Then, I added these lines to get the dollars in/out of the expense/income accounts -
01-4030-000 General Funds-Inc DR $150.00
01-7500-300 Webmaster (exp) CR $150.00
02-5025-250 Webmaster-MMO (exp) DR $150.00
xx-xxxx- ?????????????? CR $150.00 - this is where I get stuck trying to figure out where to put the other side. If I CR 02-4035-000 (income) it looks as though I had additional income of $150, which I don't.

If I can get that last account figured out, I think I'll be in business!

Betsy

You can try this instead of using Transfer accounts. Since you need to adjust Expense accounts as well, just use those accounts instead of Transfer accounts. There is no need for any Income account in this transaction.

I entered that transaction and everything seems to be great - except for one thing. How do you reconcile bank statements when half the transaction is in one account and the other half is in a different account? On the daycare account, I'm showing an outstanding subtraction of $150 and on the General Fund account, I'm showing an outstanding deposit of $150
Betsy

bjwhitson wrote: ↑

Fri Jul 10, 2020 1:22 pm

I entered that transaction and everything seems to be great - except for one thing. How do you reconcile bank statements when half the transaction is in one account and the other half is in a different account? On the daycare account, I'm showing an outstanding subtraction of $150 and on the General Fund account, I'm showing an outstanding deposit of $150
Betsy

We're under the assumption that you're using one checking account? If not let us know as that changes everything.

Nope - 2 checking accounts

bjwhitson wrote: ↑

Fri Jul 10, 2020 8:03 pm

Nope - 2 checking accounts

In this case what you'll need to do is this:

I'm assuming that you would move the funds via online banking.

You're going to need to create a new INCOME account. I'd name it Daycare Salary Portion.

Then create a Manual Check in the Daycare Accounting Fund for the gross salary amount:

02-1130-000 Daycare Checking (Credit) $150
02-5025-250 Daycare Salary (Debit) $150 (whatever account you use to expense salaries in this fund)

Then create what is essentially a deposit in Funds Accounting:

01-1110-000 Operating Checking (Debit) $150
01-4200-000 Daycare Salary Portion (Credit) $150 (This will reflect the income coming from Daycare to cover the cost)

Then process payroll in the operating fund as normal.

Thanks, Neil,
That seems to have done the trick! Both accounts balance and I don't have any unaccounted-for money anywhere.

I sure don't want to go thru that again. All the subsequent checks are coming from their own checking account!

bjwhitson wrote: ↑

Sat Jul 11, 2020 11:02 pm

Thanks, Neil,
That seems to have done the trick! Both accounts balance and I don't have any unaccounted-for money anywhere.

I sure don't want to go thru that again. All the subsequent checks are coming from their own checking account!

You shouldn't have to in future, just do the payroll out of operations, then move the gross salary as I indicated above from the Daycare account. In this way you don't have to cut two checks, and you're sure you're not withholding too much in tax.