User Support Forum

I am new with Powerchurch and am attempting to setup payroll for ministers at our church that are self-employed. We would like to deduct their Estimated Self-employment tax from their Gross Salary for them. Then each quarter we would cut them a check for the amount and they would send in their own quarterly payments. I would like the money to be set aside from the general fund. Can anyone tell me how to set this up?

To start, you would probably want seperate Payroll items for these individuals. You will also need seperate liability items in your chart of accounts for these purposes.

Once you have that, set your Payroll items as regular deductions and Debit the bank and then credit the newly created liability items.

Now you will be accumulating debt with each check in the liability item and also retaining the money in the bank account. When you are ready to pay them their money just Credit the bank and Debit their liability.

Zeb wrote:To start, you would probably want seperate Payroll items for these individuals. You will also need seperate liability items in your chart of accounts for these purposes.

Once you have that, set your Payroll items as regular deductions and Debit the bank and then credit the newly created liability items.

Now you will be accumulating debt with each check in the liability item and also retaining the money in the bank account. When you are ready to pay them their money just Credit the bank and Debit their liability.

Should I add the seperate liability items to my General Fund or should I create a seperate Fund Account? One of my main goals is to keep this money separate from the General Fund - so that it doesn't get spent. Will setting up liability items within the general fund accomplish this? I apoligize if this is a silly question but my accounting skills are limited.

that will not seperate the money.

You could either create a seperate fund (which is overkill in my opinion) or use sub accounts and break the bank account down further.

Example, your current bank account is 01-1110-000, create a new account called 01-1110-001 or whatever you want to use for the last 3 digits. that will make the account the same as far as the check register but keep the money seperate.

It may help to talk with an accountant on this issue because I certainly am not one.

Zeb wrote:that will not seperate the money.

You could either create a seperate fund (which is overkill in my opinion) or use sub accounts and break the bank account down further.

Example, your current bank account is 01-1110-000, create a new account called 01-1110-001 or whatever you want to use for the last 3 digits. that will make the account the same as far as the check register but keep the money seperate.

It may help to talk with an accountant on this issue because I certainly am not one.

I went with setting up a separate fund and now am having trouble getting my fund balances to match my checking account balance. I set up a Payroll fund with various liability accounts, then set up the Payroll items to to debit/credit the Payroll checking and liab accounts. Each week I transfer $ from my General Fund checking to my Payroll fund checking in the amount of the Gross wages. Problem I have is that my total fund balance does not match what Ihave in checking - it is over by the amount in the Payroll liability items. Is this correct? I was expecting the funds to match the checkbook.