Payroll/Taxes

[angel1]

Good morning,

I am using Power church 11.5 and began using payroll for the first pay period in June. When our Financial Representative tried to send in our quarterly tax statement, the figures were not corrected. Previous to using Power church we had used an online product. I just checked the tax setup (federal withholding table 2013 and see no problem).

Is the problem that I started mid year and Power church is set up to calculate on an annual basis the problem? What would you suggest? We could use the figures from previous as the 3 persons pay are fairly consistent and then calculate the other pay periods.

Will this correct itself beginning on January, 2013?

I know this is Sunday, but we are trying to resolve this for Monday to be able to pay our quarterly taxes as we are already late.

Thanks

[Matt]

Are you trying to run the 941 report in Power Church? If so, you will need to reinput the payroll that has been paid from January 1 through May in the Payroll module in order for this report to show the correct numbers for the 1st and 2nd quarters of 2013. Since your start date for using Power Church was June, when you go to post the transactions in the Payroll Module, select the option to only post to the Payroll Module.

[angel1]

Thanks as always, however we were not trying to use the 941 within Powerchurch, only pulling the figures from the salary history and providing that to our Financial Representative for them to prepare the 941's. We will beginning using Powerchurch starting in January of 2014, which will allow me an opportunity to finish with the chart of accounts setup.

It just appears that when the Office Administrator used a web site for payroll the taxes are different than they are in Powerchurch and the Financial Representative was having a problem with the 941 based on the figures we provided. I checked and for example someone earning 555.00 was taxed in the web system as 43.00 (married and 0 exemptions), and in Powerchurch it was only 23.00, a difference of 20.00. I thought that maybe this was due to Powerchurch calculating on an annual basis.

Angel 1

[Matt]

For the person earning $555.00, how often are they paid? For example, bi-weekly, bi-monthly, monthly, etc. I can't comment on how the web system you used came up with the $43.00 but I can test and verify the computation of the Federal Withholding in PowerChurch once I know how often the person is paid.

Also, is there a possibility that the person was having an additional amount withheld for Federal tax in the web system?

[angel1]

They are paid biweekly and the rate of pay is 11.00 an hour for 50 hrs biweekly. They claim married and zero, not sure about the extra amount, but yoy may be right. Thanks for agreeing to test for me.

[angel1]

Just found out that on the web version they were both claiming $20.00 additional.

Hope this helps.

Angel1

[NeilZ]

Just found out that on the web version they were both claiming $20.00 additional.

Hope this helps.

Angel1

Definitely makes shows why there was a $20.00 additional deduction.

You need to go into the employee's pay items, and update the Federal Income Tax item to reflect the additional $20.00 deduction.