SetUp Payroll 403b Deferral for Non-Ministerial in PC v10
Posted: Tue May 14, 2024 4:00 pm
Yes we are still using version 10
- Don't Ask ... LoL
Trying to set up a new 403b Deferral for a Non-Ministerial Employee. I used the Old v10 Knowledge Base Article for setting up the 403b deferral.
https://www.powerchurch.com/support/kb. ... =17&type=1
I created both an Expense Account for Employee 403b Deferrals AND a Liability Account for Employee 403b Deferrals as follows
- Liability account "Employee 403b Withheld" - 01-2046
- Expense account "Emp Retirement 403b" - 01-5180-008
I then set up my payroll Item Descriptions as (from the Knowledge base page)
160 = 403b Emp Inc:
- Income
- Taxable
- Debit Exp account 5180-008
- Credit Bank account 1022 (primary bank)
- for the W2 we checked boxes 3 /4 / 12 with Code E
950 = 403b withholding:
- Deduction
- No Tax
- No Tax Table
- Debit Bank Account 1022 (primary bank)
- Credit Liability Account 2046
- NO boxes checked for the W2 boxes
I understand 950 is a wash item for the 160
As I understand it, even though 403b deferrals ARE not taxable for FITW, PC Version 10 taxes FITW on the Payroll check for both Salary + 403b deferrals, BUT ... does not include the amount deferred on the Employees W2 at year end in Box 1.
So while the Employee is taxed for the deferral weekly for FITW ... They are not taxed for it on the W2 Box 1 and thus would incur a refund for the amount that was paid in too much week to week.
As far as I can tell ... this is a limitation in PowerChurch V10. PC v10 is an all or nothing for taxable income ... and will NOT allow us to separate taxable income for FITW and FICA purposes.
Ok ...
So far so good. We got all that working and it does indeed show the Employees W2 As ...
- Box 1 without 403b Deferral because it is not taxable for FITW
- Box 3 includes 403b Deferral because it is taxable here
- Box 5 includes 403b Deferral because it is taxable here
- Box 12a shows the amount Deferred and Code E
BUT ... The issue I am having ... When I print Tax Forms (W3 and W2s) in Payroll
- The Deferred amount, While it is correct on the Individual Employee W2 in Box 12 with a code E ...
- IT is NOT showing up on the W3 Transmittal
- Box 12a on the W2 has the amount deferred
- Box 12a on the W3 is blank
Why is the deferral included on the Employee W2 ... But NOT on the W3 Transmittal in PC v10? What is keeping it from being on the W3? Do I even need to show Employee Deferrals on the W3 for the IRS ? ... I would assume Yes.
- Don't Ask ... LoL
Trying to set up a new 403b Deferral for a Non-Ministerial Employee. I used the Old v10 Knowledge Base Article for setting up the 403b deferral.
https://www.powerchurch.com/support/kb. ... =17&type=1
I created both an Expense Account for Employee 403b Deferrals AND a Liability Account for Employee 403b Deferrals as follows
- Liability account "Employee 403b Withheld" - 01-2046
- Expense account "Emp Retirement 403b" - 01-5180-008
I then set up my payroll Item Descriptions as (from the Knowledge base page)
160 = 403b Emp Inc:
- Income
- Taxable
- Debit Exp account 5180-008
- Credit Bank account 1022 (primary bank)
- for the W2 we checked boxes 3 /4 / 12 with Code E
950 = 403b withholding:
- Deduction
- No Tax
- No Tax Table
- Debit Bank Account 1022 (primary bank)
- Credit Liability Account 2046
- NO boxes checked for the W2 boxes
I understand 950 is a wash item for the 160
As I understand it, even though 403b deferrals ARE not taxable for FITW, PC Version 10 taxes FITW on the Payroll check for both Salary + 403b deferrals, BUT ... does not include the amount deferred on the Employees W2 at year end in Box 1.
So while the Employee is taxed for the deferral weekly for FITW ... They are not taxed for it on the W2 Box 1 and thus would incur a refund for the amount that was paid in too much week to week.
As far as I can tell ... this is a limitation in PowerChurch V10. PC v10 is an all or nothing for taxable income ... and will NOT allow us to separate taxable income for FITW and FICA purposes.
Ok ...
So far so good. We got all that working and it does indeed show the Employees W2 As ...
- Box 1 without 403b Deferral because it is not taxable for FITW
- Box 3 includes 403b Deferral because it is taxable here
- Box 5 includes 403b Deferral because it is taxable here
- Box 12a shows the amount Deferred and Code E
BUT ... The issue I am having ... When I print Tax Forms (W3 and W2s) in Payroll
- The Deferred amount, While it is correct on the Individual Employee W2 in Box 12 with a code E ...
- IT is NOT showing up on the W3 Transmittal
- Box 12a on the W2 has the amount deferred
- Box 12a on the W3 is blank
Why is the deferral included on the Employee W2 ... But NOT on the W3 Transmittal in PC v10? What is keeping it from being on the W3? Do I even need to show Employee Deferrals on the W3 for the IRS ? ... I would assume Yes.