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I am a newly appointed treasurer for St. Peter's UMC in Emerald, PA and have several questions that follow here. 1. What are the 2012 percentages for PIP, Medicare Company/Employee (Fed Tax), Social Security Company/Employee (Fed Tax), PA State Unemployment, and Medicare Employee Additional Tax. 2. If I activate the Update 2013 info for License , Product 446-682, will there be a charge coming our way in Quickbooks? 3. Will this upgrade affect all percentages? 4. How do I set up just one percentage for salary and not for housing?
Hello and thank you for your questions.
2012 rates are not the same as 2013 rates. I assume you mean 2013, so I will give you both:
Social security - employer, 2012 & 2013: 6.2%
Social security - employee, 2012: 4.2%
Social security - employee, 2013: 6.2%
Medicare - employee, 2012 & 2013: 1.45%
Medicare - employer, 2012 & 2013: 1.45%
PA unemployment: See your Form UC-657 or contact the PA Dept. of Labor and Industry. The rates change from year to year and your state just changed its unemployment laws too (Act 60 amendments to the PA UC law). However, this assumes you have elected to pay state unemployment taxes as a religious organization. You do not have to, though some religious organizations choose to so their employees are covered.
PIP means personal injury protection (an extension of car insurance) as far as I know, and is mandatory in Pennsylvania. Check with an insurance company as the rates are proprietary.
The Update to 2013 feature in QuickBooks will update the software to QuickBooks 2013 for a fee, yes. You probably just need to renew your payroll subscription, but if your software is too old, then you will have to update to a newer version of QuickBooks to keep your payroll subscription current. Note that QuickBooks sells payroll subscriptions and copies of QuickBooks separately, so do not assume you are renewing your payroll subscription because you update to QuickBooks 2013.
Updating your payroll tax tables after renewing your payroll subscription will update the payroll tax rates in QuickBooks.
QuickBooks uses payroll items, under "Lists," as drivers for paychecks. Each form of income (salary, wages, housing, etc.) and deduction (fed withholding, state withholding, Medicare, social security, etc.) will have its own payroll item. By editing payroll items, you are able to control their tax treatments, which accounts they map too, etc. You should set up a payroll item for housing and a payroll item for salary.
As a QuickBooks ProAdvisor with experience doing the accounting for religious organizations, I strongly suggest you get some professional consulting if you are a newly appointed treasurer and your current system of bookkeeping and financial reporting has flaws in it. A nice system of reporting will have your payroll taxes calculated and paid properly, will record restrictions on net assets (very important for a church), and will produce quality financial information for the Board. QuickBooks itself is not designed for religious organizations and is tricky for running member contribution statements and tracking restricted net assets.
I hope this is helpful. Good luck!