Funds Transfer & Payroll Deductions

[bsatter12345]

I have 2 questions.

Number 1...We have a "fund" setup to pay for our Pastor's expenses to our General Assembly next year. I am wanting to transfer $350 per month to this "fund" until July of 2010. I'm not actually withdrawing money out of the bank account or cutting a check or anything. I'm basically saying that I want to set this money aside each month. I have an equity account set up under "temporarily restricted", but I can't figure out how to do the transfer of money.


Number 2...How do you do automatic tithe deductions from payroll checks? For example...say the Senior Pastor is paid $500 per week. This is straight money. No taxes are deducted, as he takes care of that on his own. So, his full check amount should be $500. How would I be able to deduct his tithes automatically, and cut him a check for $450 (showing the full salary amount and also the tithe deduction on the stub), and also make sure the tithe gets recorded correctly in the Contributions module?

Thanks for your help!!!
Ben

[JohnDMeyers]

Answer to Number 1. You only use temporary restriction on money that the donor requests a restriction on. This is an "internal restriction" which is different. A sub-account would work good for this purpose. You're not really moving money out of the physical bank account, and a sub-account includes the money as still being in the account for reconciliation purposes:

For example:
Existing account 01-1110-000 general checking
ADD 01-1110-001 set-aside money

CR 01-1110-000 general checking $350
DB 01-1110-001 set-aside money $350

Answer to Number 2. ADD an Item Description in the Payroll module for Deduction - Wages, Tips, etc. for $50.00

DB 01-1110-000 general checking
CR 01-2110-000 pastor's tithe owed

There is no connection between the Payroll Module and Contributions in version 10. I haven't dug into version 11 far enough to know if there is a connection that you use there.

You will have to manually enter the Pastor's tithe contribution in the Contributions Module (version 10), with a Contribution Fund that does this:

Contribution Fund 301
DB 01-2110-000 pastor's tithe owed
CR 01-4110-000 general tithes and offerings

[Jeff]

Version 11 adds a new contribution deduction in payroll. There are a few things you have to do to make this work.

Add the envelope to the employee on the employee screen.
Create a new contribution deduction item in maintain item descriptions.
Add the contribution deduction to the pay check. This is where you will specify the contribution fund.

When you post this item:
The accounting transaction will credit the income account.
Also it will be recorded in the posted contributions table so the contribution will show on the contribution statement.