User Support Forum

Our Youth Pastor is moving into an apartment owned by the church. The rent has been set at $100.00 per week. Can I set this up to deduct from the housing allowance part of his paycheck on a weekly basis and if so, is this the best way to do this? His utilities are all included because the apartment is connected to the churches outreach facility. He does not have much else that will fall into housing allowance.

If there is a better way to do this, please let me know.

Thanks.
Sheilah
Version 11.1

You can do it in Payroll. You can do it in Accounts Payable.

Both require about the same amount of keystrokes once they are setup, so it makes more sense to do it in Payroll. Payroll takes a little longer to setup, but the same as Accounts Payable after that.

If you run payroll weekly, this will be fairly easy to setup. I will assume you do, since you gave the rent as a weekly amount.

Create a Pay Item: Payroll / Setup / Maintain Item Descriptions
ADD
45 (or any number)
YP Rent
Other Deduction
Liability: 01-1110-000 checking $100.00
Bank account: 01-5140-000 rent $100.00

Note: I switched the bank account and put it in the Liability category, because this account is the CR account of the transaction. The expense account is in the place of the Bank account because this is the DB side of the transaction.

Go into Payroll / Maintain List of Employees
Locate this employee
Pay Item [tab]
ADD
45 YP Rent

This *should* work.

Thanks for the response John, however, I'm still a bit confused and I got an error of "Account is not the correct type" when I tried it.

Why would I be increasing an expense when it is actually income for the church? (We had a previous tenant in the apartment and I recorded the rent payment each month through the "Enter Transactions" screen, crediting the income and debiting the bank account.)

When I run payroll, the YP is paid from the General Fund (10). The rent needs to be added to the Outreach Facility (37).

Thanks.
Sheilah

Well, now... you're giving me a little more information.

If you want to deduct $100.00 from the Youth Pastor's pay, and record it as an income, then use the Contribution Deduction in the Pay Items, instead of the Other Deductions.

I'm assuming your Accounting Fund number is 37, because you put (37) in parenthesis, and I'm not sure what it meant, but maybe it means Accounting Fund number.

First, go into Contributions and setup the Rent Income like this.
Contributions / Maintain List of Accounting Funds
ADD
301
Rent from YP
DB 37-1110-000 checking
CR 37-4150-000 rent from YP

Then, setup the Pay Item as I described above, using this Contribution Fund 301 in the Contribution Deduction.

This was an option I had considered, however, was wanting to use it as a last resort, and it appears we have arrived there. I don't like logging something as a contribution that is not one, but it does seem that it will accomplish my end goal. Will just have to do some manual calculations at the end of year I guess.

Thanks for all your help.
Sheilah

SheilahH wrote:This was an option I had considered, however, was wanting to use it as a last resort, and it appears we have arrived there. I don't like logging something as a contribution that is not one, but it does seem that it will accomplish my end goal. Will just have to do some manual calculations at the end of year I guess.

Thanks for all your help.
Sheilah

However, you're not using this as a contribution, but as a way to deduct the rent. Set it up as a non-deductible contribution fund, and it won't appear on any statement.

I was thinking the same thing that Neil just said.

What I have done is create custom codes in Contributions for special purposes like this:
Contributions / Setup / Maintain Custom Codes, Contributions Types
ADD
Non Tax Deductible
ADD
Tax Deductible
ADD
Services Received
ADD
Registration Fee
[ADD any other categories that you need]

Then go to Contributions / Setup / Maintain List of Contribution Funds
ADD
301
Rent from YP
(you will see Contribution Fund Type Window with your Custom Codes)
[select] Non Tax Deductible
[uncheck] Include Fund on Statements
[Accounting tab]
DB 37-1110-000 checking
CR 37-4150-000 rent from YP

This is how I would set this up.

Thank you both very much. That worked perfectly.

Sheilah