"EDITED ONLINER DIALOGS"
TOPIC: Payroll/Tax re Non-Cash Stipend Issues UPTD: January 14, 2000
TOPICAL OVERVIEW: This School has staff and faculty who receive both cash and non-cash (Room and Board) compensation for their services. This dialog provides some thinking about how such matters should be handled within QuickBooks (TM) (QB) . FILE: 2001-07
TO FORUM: Went to the http://www.bcidot.org Web Site, but could not find specific answers within context of the following:
- I am a volunteer at a Christian School where we use QBooks.
- We have faculty/staff who receive a stipend of $xxx.xx a month plus they are provided Room and Board.
- Some of our faculty only receive Room and Board,
- When they receive Cash and Room and Board, it seems I should reduce the amount of cash by withholding for the total.
- We need to handle such matters properly for Federal and State Income taxes.
- Here we are toward the end of the calendar year and much of this started earlier on and we have NOT filed any payroll tax returns.
- Can you help me as I need to do the appropriate things ASAP.TO: Onliner 01
My understanding of your technical questions result in the following observations:
- Ideally you should be working with a local CPA who can provide hands-on assistance.
- But, Intuit has a payroll service that ties into QBooks and is very responsive to most all payroll needs --- and, in my opinion, money well spent.
- Since your payroll is 'different', there might be merit in you having a Payroll only QB Company for at least the year 1999.
- You are absolutely correct .....non-clergy Ministry Staffer Stipends are no different than the usual Salaries/Wages and are subject to applicable Fed and State Employee payroll taxes and withholding .
- Also, non-clergy Non-Cash Stipends (like meals, lodging) are subject to applicable Fed and State Employee payroll taxes and withholding. The non-cash dollar amount is the local fair market value.
- Yes, I agree, the usual way is to include both the cash stipend (like $400.00) and non-cash stipend fair market value (like $300.00) in gross pay; make the applicable Federal/State tax withholdings as computed on the $700.00, (like $75.00 tax withholding), deduct the non-cash ($300.00) and the resulting net pay (like $325.00) goes to the Staffer.
- The Ministry, like any other Employer, must comply with applicable Depositary Receipt/Quarterly/Annual payroll (stipend) reporting requirements. The Staffer receives calendar year reports from the Ministry like any other Employer and then the Staffer must settle up their applicable annual taxes like the usual employee.
- While awkward within any payroll system, this is manually doable within the QB payroll system in the manner you describe.
As most of you know, we here at www.bcidot.org dialog by email with Onliners regarding Ministry Finance (MinFin) matters. Above are what we call "Edited Onliner Dialogs", or edited version of actual dialogs with some of you, but we have honored your privacy and not used your name or that of your Ministry. Our purpose is to make topical MinFin information available to any interested Ministry Finance Team 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 you together. Thanx - Jim Bramer - Proverbs 9:10
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