User Support Forum

Hello,

I am working on setting up the payroll part of PC 10. I have been paying the payroll by hand since the beginning of the year and I want to record what I have done already and use the system for the future.

For our minister, we have an annual salary that we deduct a portion of the salary for medical reimbursement. This will create the taxable portion of his salary. From that taxable salary, we compute the federal, state and local taxes. The problem that I am having is that when I put in his salary, before the medical is removed, the taxable income value is too high and the payroll test does not match the amount that I have been paying him. If I change his salary (in the employee setup) to his taxable income, the payroll module creates a check that matches that I have been paying him.

Is there a way for me to put in his actual salary, but reduce the taxable income?

Thanks
Mike

If the medical reimbursement is completely tax free, you can define a second "Income" item for the minister, which is marked as Taxable Income: No.

Split the amount of income between the two income items, one for the taxable amount, the rest for the amount of the pre-tax deduction.

Zorak wrote:If the medical reimbursement is completely tax free, you can define a second "Income" item for the minister, which is marked as Taxable Income: No.

Split the amount of income between the two income items, one for the taxable amount, the rest for the amount of the pre-tax deduction.

Thanks a lot for your help. It took me a little bit to figure out what you meant, but a light bulb finally went on.

Mike

Zorak wrote:If the medical reimbursement is completely tax free, you can define a second "Income" item for the minister, which is marked as Taxable Income: No.

Split the amount of income between the two income items, one for the taxable amount, the rest for the amount of the pre-tax deduction.

As a follow up to this. I have gotten the taxable amount to be correct now. If I decide to not process the medical insurance "income" at the time of the payroll check, how do I just process that later? Do I just select that one to be processed and all of the other item set to "No"?

Also, the previous treasurer did the calculations for the federal tax, and the calculation was off by $1.00. I have manually done two payroll checks, how can I note that the first two checks were a different amount?