Our current payroll set up is what came preset in terms of accounts and subaccounts.
Our pastor receives money towards a Christian health sharing ministry that is currently being tracked under health insurance. It is showing up on the monthly reports under pastoral salary. The board of directors does not like this. They would like to see separate line items for the base salary and the amount for health care.
Our accounts currently look like this:
5060-000 5. Senior Pastor
5061-001 6. SP Salary
5062-002 6. SP Retirement
5063-004 6. SP Health Insurance
5064-005 6. SP Christmas Bonus
We don't use the retirement or bonus categories. Can this be changed so that the health insurance is its own line/expense rather than bundled with the salary?
Thanks for your help!
Payroll & Health Insurance
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JohnDMeyers
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Re: Payroll & Health Insurance
It takes some familiarity with tax law to answer this question. More than I have.
Here's what I know about it.
1) If your church wants to pay for the health insurance for your pastor, separate from your pastor's compensation, the technical answer is to just pay it like any other bill. I'm not sure how that jives with payroll rules for pastors, however.
2) If you want make the health insurance part of the pastor's compensation, then the technical answer is that you need to include the amount in his pay, and make the payment a deduction. You can create a new item under Item Descriptions and point it to the correct expense account.
It would help me to give a better answer if I knew what your intention is (option 1 or 2 above).
Here's what I know about it.
1) If your church wants to pay for the health insurance for your pastor, separate from your pastor's compensation, the technical answer is to just pay it like any other bill. I'm not sure how that jives with payroll rules for pastors, however.
2) If you want make the health insurance part of the pastor's compensation, then the technical answer is that you need to include the amount in his pay, and make the payment a deduction. You can create a new item under Item Descriptions and point it to the correct expense account.
It would help me to give a better answer if I knew what your intention is (option 1 or 2 above).
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Re: Payroll & Health Insurance
The payment is part of his overall compensation package. However, on the W2 form it is listed on a different line than the actual salary itself. (It gets lumped together with housing allowance, etc.)
What I need to try to do (because the board is requesting it) is somehow separate this out on the reports. And as I am typing this a little light bulb just went on!!! Our board does not want heavily detailed reports so I print them all of their reports from level 4 and above. The pastoral salary breakdown for the health component is a level 6 so everything under salaries is grouped together. I guess what I will have to do is print them a separate report on pastoral compensation where it is more detailed.
Thanks for your response!
Deanne
What I need to try to do (because the board is requesting it) is somehow separate this out on the reports. And as I am typing this a little light bulb just went on!!! Our board does not want heavily detailed reports so I print them all of their reports from level 4 and above. The pastoral salary breakdown for the health component is a level 6 so everything under salaries is grouped together. I guess what I will have to do is print them a separate report on pastoral compensation where it is more detailed.
Thanks for your response!
Deanne