Recording Payroll in Accounting
Though ChurchTrac is NOT a church payroll platform, you still need to enter your final payroll numbers into the Accounting screen to track your church's finances properly. Watch the video above and follow the below steps for recording payroll. (United States only)
- Create Your Categories
- Budgeted vs Non Budgeted Categories
- Create Your Payees
- Create a Transaction
- What About Recording My Quarterly 941?
Step 1: Create Your Categories
Create your Budgeted and Non-Budgeted Payroll Tax Categories with the following sub-categories in the accounting screen:
Budgeted vs Non Budgeted Categories
When setting up categories for payroll, it's important to distinguish between budgeted and non-budgeted items. Budgeted categories will have allocated amounts in your budget, while non-budgeted categories are used only for tracking purposes and not included in your budget. Learn more about Budgeted vs Non Budgeted Categories ›
Step 2: Create Your Payees
Create a Payee for each employee using your main payroll category, followed by the additional payroll taxes you created in step 1. Be sure to mark the Transaction Type as an expense as well.
The amounts you enter are based on the calculations made by your payroll platform. Your top payroll category will be a positive number, while the taxes will be listed as negative.
Step 3: Create a Transaction
Create an accounting transaction on your checking account from your saved payee. Be sure to verify the amounts with your payroll platform for non-salary employees, as those amounts may change for each paycheck.
What about Recording my Quarterly 941?
Create a Payee for your Quarterly 941 to make recording your IRS payments quick and easy. We recommend leaving the amounts as "0" since your amounts will likely vary from quarter to quarter.
