When I started using Powerchurch last October, I began entering information from January. I have now come to the end of 2008. Finally...
I used the payroll module and posted manual checks. Now, as I am finally ready to end my year, I find 11 cents left in the medicare liability account. Can I just do a GE to move this back to the unrestricted funds? I can't figure any other place for it to go.
There are two places where the 11 cents may appear.
You said you have 11 cents left over, so I assume you made an underpayment of 11 cents.
One place to look is the checking account. Reconciling your bank account should turn this up, if that is where the error is.
The other place is in your expense account. If you overstated the amount you owe by 11 cents, then the Medicare expense account will also have an overstatement.
If the error is in the bank account, you can create a manual check for 11 cents to the Medicare vendor and post it.
If the bank account reconciles ok, I would assume its the expense account and DB the liability and CR the expense account.
I suppose it's possible that the error is split between the bank account and the expense account as well.
Sounds like round-off error. You may want to check your Medicare tax tables and see what the percentage is. It may be off in the hundreds or thousands place.
Also, are you using a different tax table for employee medicare vs employer medicare? If so, one of them might be off.
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Thank you for your reply. I have reviewed and reviewed and reviewed I believe the discrepancy comes from a half cent liability. So, it is split between the bank account and the liability. The bank account is .05.
I have checked the tax tables. They are correct with the .0145 amount.
The bank statement says To Balance .05.
So, if I create a check for .05 and then DB the liability and CR the expense for .06, would that be the correct correction?
Thank you,
Kim Lewis
Treasurer
Onion Creek Baptist Church
I believe the discrepancy comes from a half cent liability. So, it is split between the bank account and the liability. The bank account is .05.