Adjustments

Track benefits, additional compensation, employer paid items, and any other additions or subtractions to an employee's wages.

Payroll adjustments track benefits, additional compensation, employer paid items, and any other additions or subtractions to an employee's wages.

This includes housing and auto allowances, phone reimbursements, retirement plans, insurance, and one-time deductions for item purchases.

Add a Payroll Adjustment

Enter all benefits, adjustments, and ministerial allowances that your employees have.

You must have accounting administrator permissions to perform this task.
  1. Click Accounting > Payroll > Adjustments.
  2. Click Add Adjustment.
  3. Enter information about the new adjustment, like health insurance or retirement, and enter the amount or percentage of the adjustment that affects the employee's paycheck.
  4. Select all taxes that apply to this adjustment. For more on tax information, see Tax Details in our related topics.
  5. Select the W-2 box this adjustment belongs to, and click Save when you're finished.
    Tip: The following are a few examples of adjustments to get you thinking about what you might need to include:
    • Additions— If your pastor has a housing allowance as part of their salary package, this is set up as an addition. Other additions include auto allowances for pastors and mobile phone allowances. Additions require you to use an expense account.
    • Deductions— Most commonly, insurance costs count as deductions from an employee's paycheck. Deductions require you to use a credit account that includes liabilities, expenses, and receivables.
    • Employer Contributions— If your church has set up a way to compensate a percentage of an employee's deduction, like a 401k match, this counts as an employer contribution. Anything an employer contributes that doesn't affect the employee's paycheck counts as an employer contribution. Employer contributions require you to use both an expense and a credit account.

Edit a Payroll Adjustment

Edit the default amount, account, or W-2 box assigned to a payroll adjustment.

You must have accounting administrator permissions to perform this task.
  1. Click Accounting > Payroll > Adjustments.
  2. Click the ellipsis icon beside the adjustment you want to edit and select Edit.
  3. Make any necessary changes to the adjustment's details. Any account or tax changes will only affect future payroll runs, not any that are currently in progress.
  4. Click Save.

Delete a Payroll Adjustment

Delete a payroll adjustment you no longer need.

You must have accounting administrator permissions to perform this task.
  1. Click Accounting > Payroll > Adjustments.
  2. Click the ellipsis icon beside an adjustment, and select Delete. If a payroll adjustment has activity, you must make it inactive instead.
  3. To confirm, click Yes.

Make an Adjustment Inactive

Make adjustments inactive if they're no longer in use.

You must have accounting administrator permissions to perform this task.
  1. Click Accounting > Payroll > Adjustments.
  2. Click the ellipsis icon beside an adjustment, and select Edit.
  3. Clear the Active check box.
  4. Click Save. This adjustment will now display on the Inactive list.

Make an Adjustment Active

Locate an inactive adjustment, and make it active again.

You must have accounting administrator permissions to perform this task.
One or more adjustments may be applied that are only temporary, like a summer daycare service for when employees' children aren't in school. While inactive for most of the year, you would want to make it active again for the summer months.
  1. Click Accounting > Payroll > Adjustments.
  2. Select Inactive.
  3. Click the ellipsis icon beside an adjustment, and select Edit.
  4. Select the Active check box.
  5. Click Save. This adjustment will now display on the Active list.