New Church Name/EIN
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New Church Name/EIN
We recently changed our church name, incorporated, and obtained a new EIN. We have been using PowerChurch and will continue to do so. What recommendations are there in reflecting/separating the old church business and the new business, especially in the areas of payroll? Technically, our employees are employees of two different entities this year.
Re: New Church Name/EIN
This is a question that I've not seen before. Don't know about the legal implications of this change, I assume you will terminate the original name and EIN with the tax folks and I don't know how this needs to be done so you need to get some legal & tax advice for that. Also, you will have to change EIN's with the bank accounts and possibly the bank will require you to open a new account under the new EIN.
From a Power Church standpoint, I would suggest you start a new data set for the new name and EIN. Just like you were starting PC with no previous data. You could maintain the old church data on a separate stand alone computer and certainly make a back up of this data for future reference. You would start with the fund balances from the end of the previous business. This way you can make any changes you would like in accounting setup when you start with the new business name.
You can change the name and EIN on PC but then all the reports you run in future will have that new information. On tax forms, 941's, etc you would want to show the old EIN until you terminate that number. Looks like at the end of this year, your employees will receive two W-2's one from each of the EIN's.
The other way might be to continue to use PC with the old data and new name and EIN. Then when you run tax forms for the time period that the old name was used, you will have to manually change the name and EIN on the tax forms. A good opportunity to make an error in tax reporting.
Hope this helps.
From a Power Church standpoint, I would suggest you start a new data set for the new name and EIN. Just like you were starting PC with no previous data. You could maintain the old church data on a separate stand alone computer and certainly make a back up of this data for future reference. You would start with the fund balances from the end of the previous business. This way you can make any changes you would like in accounting setup when you start with the new business name.
You can change the name and EIN on PC but then all the reports you run in future will have that new information. On tax forms, 941's, etc you would want to show the old EIN until you terminate that number. Looks like at the end of this year, your employees will receive two W-2's one from each of the EIN's.
The other way might be to continue to use PC with the old data and new name and EIN. Then when you run tax forms for the time period that the old name was used, you will have to manually change the name and EIN on the tax forms. A good opportunity to make an error in tax reporting.
Hope this helps.