Quarterly 941 not coming out right

[onemore4gsus]

Problem with PowerChurch-produced 941

For 941, Line 2, PowerChurch software is capturing neither Pastor's salary nor his "social security assistance" compensation. (Also not capturing housing, but we don't want it to, right?)

How should I code these (salary AND the ssa) Item Descriptions so they *will* be captured for 941 Line 2 but *NOT* for Lines 5A or 5C?

BTW, PowerChurch is doing nicely with 941 Lines 5A and 5C now, so I don't want to mess up those.

Thirdly, please correct me if I am not figuring 941 Line 2 correctly by my *including* there the pastor's salary and also his social security assistance while excluding his housing allowance.

Thanks!!

[onemore4gsus]

I am using version 11.1, by the way.

[tborgal]

Correct you do not want to capture the housing allowance in line 2. What you need to do is in the Payroll Item Description Window under Tax Options: click the arrow at the right of the box and select "More Options". Then select the Federal Withholding check box and State Withholding check box if needed. Leave the Medicare and Social Security unchecked. This of course assumes that you are withholding income tax from him. Those amounts should then be calculated in line 2 of 941.

[onemore4gsus]

Tom,

That is the exact solution to the problem. Thank you! Hope this will help someone else out there.

[tborgal]

Your welcome. Glad I could be of help.

[rporter1952]

I have a related question regarding the 941 Report. When Powerchurch generates the report,
box 1 shows a number of employees. Box 2 shows the taxable income. In our situation the
number of people for which the income is reported is 6, but box one is showing 4. There are
two pastors on the payroll so I'm assuming their incomes must be reported even though we
do not take out taxes for them.

Powerchurch used to report more employees in box one. Was there a change. It appears to
not enumerate people for whom no taxes were taken out while it does report the income amounts.
I'm not sure what else could be a factor. When I generate the prior quarter report the number
is less than when we reported it at that time.

-Long Term User in Texas

[NeilZ]

I have a related question regarding the 941 Report. When Powerchurch generates the report,
box 1 shows a number of employees. Box 2 shows the taxable income. In our situation the
number of people for which the income is reported is 6, but box one is showing 4. There are
two pastors on the payroll so I'm assuming their incomes must be reported even though we
do not take out taxes for them.

Powerchurch used to report more employees in box one. Was there a change. It appears to
not enumerate people for whom no taxes were taken out while it does report the income amounts.
I'm not sure what else could be a factor. When I generate the prior quarter report the number
is less than when we reported it at that time.

-Long Term User in Texas

I'm assuming you're using v11.x (either .1 or .5). Check your Start and End of employment dates on the Payroll Information tab for all your employees under the Maintain List of Employees module. The system will remove any employee who was not actively employed as of Dec 12th for the 4th quarter.

I may be wrong, but I don't think that 'not withholding tax' is the determination on the number of employees, because many ministers do not have withholding taken out, but must have their income listed in box 2, but not in box 5 as they pay SECA.

[debbieg]

Tom,

That is the exact solution to the problem. Thank you! Hope this will help someone else out there.

This forum is great!! I was just looking for this same thing myself and found your post. Now I don't have to manually adjust the 941 every quarter!
Thanks,
Debbie