Tina Burlew wrote: ↑Thu Oct 29, 2020 1:12 pm
I recently purchased a gift for our pastor using the church's checking account. The credit was to cash and the dr was to Ministry Gifts (6466).
How do I add this gift ($500) to payroll? I have payroll set up to record gifts but it feeds back to the same expense expense account(6466). That will not work
. Sometimes the simple things do not come easy
Thanks
Tina Burlew
Solid Rock Baptist Church
Prospect, Tn
The problem is that you used the AP to create the check, you're going to have to figure out the amount of income taxes (federal & state) that will need to be withheld to cover the gift. I would do a backup of the accounting database first.
NOTE: I'm assuming here that you do withholding, if not skip about items 6,7,8, and 12.
1. Find the check that you used to buy the gift. Make a note of the amount, the date, and the check number. You'll need these later on.
2. Make sure that the pastor has a pay item for 'taxable gifts' listed on his list of pay items.
3. Run payroll with the date used to cut the first check for the payroll period, and the date of the check. CHECK the box that says suppress specific items
4. Select the pastor from the list of employees, if there are more than one, and uncheck the boxes on the rest.
5. On the Enter Salary Payroll ZERO out everything but the Taxable Gifts and enter 500.00 there
If you don't withhold taxes - SKIP to step 9
6. On the Process items page, uncheck everything but the taxes that would cover this gift.
7. On the Verify Payroll page, double click (or click on PREVIEW) to see what the check would look like. Make a note of the taxes that were calculated.
8. Click on the PREVIOUS button, then uncheck the tax pay items.
9. On the Verify Payroll select MANUAL CHECK from the payment methods, then enter the check number. The check amount should still show $500.00
10 Click FINISH.
11. Post Payroll ... for the posting option, select Post to PAYROLL Module only. This will get it in the payroll database for the W2.
If you don't withhold taxes, you're done if you do, go to step 12
12. Remember those tax amounts I said to hold on to? You'll need them when payroll comes around as you're going to have to add them to the pastor's normal tax withholding so the pastor will have enough to help cover the taxes for the gift.