User Support Forum

We withhold taxes for our pastors, and then "pay" them to each one quarterly, so that they can, in turn, file them independently. We pay from "5305 Payroll Taxes", but it seems to be doubling what is happening with "5065-014 SP Tax Allowance" and "5097-008 YP Tax Allowance". It appears that whatever is being "paid" and then "withheld" until the quarterly payments is counted twice when entered into 5305 each quarter. So, the system is showing that we pay twice the amount of quarterly taxes for the pastors than actually we do. Our income and expense statement reflects this, and I am unsure of where to even begin to correct it.

This should probably be paid into and out of a liability account, rather than an expense account. The expense is not the church's, it is the pastor's.

Thank you. That sounds simple enough. I will work on it that way.