payroll tax ?

[treasurer4tbc]

Hi Neil - it's me again. You had answered my payroll questions in the contribution post but I didn't want to continue in the wrong category with a new question, I have hopefully resolved all the issues between fund 01 and fund 03 about moving the funds through the system. This was for our preschool. We also have another school that the church pays payroll taxes. I'm betting you think we have a mixed up set of books but fortunately everything works out accurately with a lot of the help provided by you. The school's taxes are paid when the churches taxes are paid, then I enter the reverse which places the money back into accounts which were paid for the school. (Also bank transfer made).
d c
01-0110 checking acct ---------
01-2215 fed liability -------
01-2217 ss liability -------
01-2219 med liability -------

The remaining problem is the actual payroll expense. I believe this should be added to the church's payroll expense account but I can't figure out how to do it. Hope you can help me. Thanks.

[NeilZ]

Hi Neil - it's me again. You had answered my payroll questions in the contribution post but I didn't want to continue in the wrong category with a new question, I have hopefully resolved all the issues between fund 01 and fund 03 about moving the funds through the system. This was for our preschool. We also have another school that the church pays payroll taxes. I'm betting you think we have a mixed up set of books but fortunately everything works out accurately with a lot of the help provided by you. The school's taxes are paid when the churches taxes are paid, then I enter the reverse which places the money back into accounts which were paid for the school. (Also bank transfer made).
d c
01-0110 checking acct ---------
01-2215 fed liability -------
01-2217 ss liability -------
01-2219 med liability -------

The remaining problem is the actual payroll expense. I believe this should be added to the church's payroll expense account but I can't figure out how to do it. Hope you can help me. Thanks.

Honestly I'm surprised that you can get a Trial Balance or Balance Sheet to zero out.

Frankly, I'm at the point where I really can't assist. My advice would be to get separate FEINs for the Preschool and other School. This would solve ALL your problems without having to transfer all over the place.

I would definitely check with an accountant familiar with fund accounting and church finances in particular.

[treasurer4tbc]

Thanks anyway, Neil. You've been a tremendous help. By the way, the trial balances and balance sheets are what they're supposed to be.

[NeilZ]

Thanks anyway, Neil. You've been a tremendous help. By the way, the trial balances and balance sheets are what they're supposed to be.

Well that's good to hear, all the transfers are working properly

The only other suggestion would be to create a new fund for payroll, that you transfer expenses and funds from Operations and the school, and you pay all the employees from that fund.