housing allowance

[athomas]

Using version 12. Read an older post where Matt described setting up housing allowance - "Then, when setting up the income Pay Item for the Pastor's Housing Allowance, under "Tax Options", you need to click the down arrow and select "Housing Allowance". PowerChurch is set up to automatically exclude the Housing Allowance from being picked up as wages in Box 2 on the W-2 and also put the Housing Allowance amount in Box 14 on the W-2 when this tax option is selected."

my question is what is the difference in checking housing allowance under tax options more options as opposed to checking housing allowance listed beside tax options. do they both automatically exclude housing from being picked up as part of wages. why 2 areas for housing allowance. confused.

Also have a ? about the federal tax box for pastor. no taxes are set up in maintain employees; however in order for the wages to show up on w2, the federal tax box is checked under more options. is this correct. have read posts on this but still not clear to me

thanks in advance

[NeilZ]

Using version 12. Read an older post where Matt described setting up housing allowance - "Then, when setting up the income Pay Item for the Pastor's Housing Allowance, under "Tax Options", you need to click the down arrow and select "Housing Allowance". PowerChurch is set up to automatically exclude the Housing Allowance from being picked up as wages in Box 2 on the W-2 and also put the Housing Allowance amount in Box 14 on the W-2 when this tax option is selected."

my question is what is the difference in checking housing allowance under tax options more options as opposed to checking housing allowance listed beside tax options. do they both automatically exclude housing from being picked up as part of wages. why 2 areas for housing allowance. confused.

There are some states that tax housing allowance, so the Tax Options allows the user to add those tax deductions. If your state does not do this, then just checking the Housing Allowance checkbox does the trick.

Also have a ? about the federal tax box for pastor. no taxes are set up in maintain employees; however in order for the wages to show up on w2, the federal tax box is checked under more options. is this correct. have read posts on this but still not clear to me

thanks in advance

That is correct, you have to have the salary marked as taxable for Federal Taxes, along with any state or local entities.

[bsbrown]

thank you Neil. I feel relief that it's correct

[athomas]

just one last thing, Neil, thanks to your input, finally figured which info was going on 941 and it turned out item descriptions actually set up correctly so everything looks good now, the problem was that those doing tax deposits were trying to manually calculate rather than accepting what system generated. still trying to do old school. many thanks.

[NeilZ]

just one last thing, Neil, thanks to your input, finally figured which info was going on 941 and it turned out item descriptions actually set up correctly so everything looks good now, the problem was that those doing tax deposits were trying to manually calculate rather than accepting what system generated. still trying to do old school. many thanks.

Oh good grief ... if the system is setup correctly, it WILL produce the correct amounts.

Time and time again people try to 'verify' the system, and each time they don't get it right because the system uses the ANNUAL FITW tables, and they're trying to use the weekly, bi-weekly, etc.