2024-07 QB or QBooks & Manual Payroll - ZZeod


TOPIC: QBooks and Manual Payroll                                                  FILE: 2024-07 

TOPICAL  OVERVIEW:  Dialog with regard to Ministries using QBooks (QB)  for their unique regular and clergy payroll needs.  Not necessary to subscribe and pay for QBs Online payroll service or their payroll tables as you manually compute any payroll taxes and produce your pay checks.

Onliner "1":

     We have the latest version of QuickBooks (QB) for our Ministry's Fund Accounting and we use the normal QB Income and Expense feature for our General Fund.  For each Designated Fund, we use a QB Equity Account and then we use QB Classes to indicate their start and why they change.  Click here for more specifics.
        A number of our staff are qualified clergy.  How do I use the QB payroll to produce their year end W-2s, etc?  Also, I am not interested in either QBs Online payroll services as we will produce their pay checks manually.
         I know -- I know;  most advisers say to "farm it out"  ----- especially when such entities care for such things as:  >>  direct deposit of net pay to staffer's personal bank account; >>  timely depositing of applicable withheld payroll taxes, and >>  filing required quarterly/annual federal and state payroll tax returns and forms to employees

Onliner "A":�

        First , it might appear otherwise, but you are NOT required to use their Online payroll services or pay for their payroll tax tables.  Some time ago an edited version of their "Manual Payroll" instructions appeared like the following::

    If you do not have, or desire to not use payroll Internet access, follow these steps to manually process payroll:  Click the Employee menu, point to "Set Up Payroll" services, and then select "Learn About Payroll Service." From the menu options at the top of the page, click "Manual Calculations." Click the I choose to manually calculate payroll taxes button.
    You will no longer be prompted to sign up for the payroll services and your payroll taxes will have to be manually calculated and entered.

Onliner "1":

        Very good ... thank you for making this known - I hope I still have that option. 
        As you know, Clergy are unique tax payers since they have a housing allowance that is subject to self employment taxes but not income taxes --- plus other unusual tax payer issues.  Click here for some more data on such Clergy matters. Suffice is to say --- they receive an annual W-2 but are not subject to employee payroll taxes.  How do we reflect all of this within our present version of QBPro?

Onliner "A":

        You have to carefully follow the QB payroll set up instructions so that you can properly ID such housing allowance and stipend payments without withholding any payroll taxes.  Let us know at  Jim@bcidot.org  if you think we can be of help along these lines.  An option  is to use the resource found when you  Click Here and I walk through it with you as you observe the contents of my desktop, etc.     Please. Click here for more  QBPro and annual W-2 issues.

Onliner "1":

        Very very helpful - thank you.  Any other matters that would assist us in this process.  

Onliner "A":

        Yes. Like most tax-exempt Ministries, you probably are exempt from Federal and State unemployment taxes.   Make this very clear when you Setup your QBPro payroll system.  
        Do not be confused with the fact that most Clergy pay some taxes and they can voluntarily ask the Ministry to withhold any amount they desire for Federal and State Income purposes ---- and you then transmit such amounts with the usual employee payroll taxes.  Such amounts will appear as Federal and/or State Withheld Income Taxes on their unique annual W-2.   This way a Clergy person does not have to file and pay quarterly tax payments via Forms 1040ES (and applicable state form). 

       As most of you know, we here at  www.bcidot.org  dialog by email with Onliners regarding Ministry Finance (MinFin) issues.  Above is an "Edited Onliner Dialog", or an edited version of an actual dialog with one of you, but we have honored your privacy and have not used your name or that of your Ministry. Our purpose is to take this information and make it available to any interested Ministry Finance Team (MFTeam) so you can learn from one another. Let us know if you would like to dialog on a Peer to Peer basis with the other Onliner involved and we will try to put the two of you together.         UPTD: March 09, 2012        Thanx - Jim Bramer - Proverbs  9:10