How to set up a Self Employed Clergy Payroll Record
Salary Information Tab:
Set up the Salary Information tab just as for any employee except in the Employee Checking, Period, Hours, Self Employed area, you will mark one of the Self Employed boxes as follows:
W2 or 1099: To ensure a W2 is printed for this employee, mark the Self Emp. (Clergy) W2 on the Salary Information Tab. Or, if they are a 1099 Employee, mark the Self Emp. (Clergy) 1099 box.
Note: The Hours Per Period on the Salary Information Page should match the Hours you enter when you add the Earnings Code on the Earnings Tab.
Earnings Tab: Click the Add button at the bottom of the Earnings Screen to add the Earnings Code.
Note: if you have added the wrong code and have not processed payroll using it, you may select the incorrect earnings code and click the Delete button. If you have used the incorrect code in even one payroll process, you must un-mark the Active box and click Save. Then, add the correct Earnings Code.
Earnings Code: Self Employed (Clergy) vs. Self Employed (Clergy-Earnings)
Self Employed (Clergy) takes no Federal or State taxes. Self Employed (Clergy Earnings) takes Federal and State taxes depending on Exemptions and the Earnings to calculate the tax deductions.
To see why Self Employed (Clergy) and Self Employed (Clergy Earnings) treat taxes differently, go to File, Preferences, Payroll, Earn/Deduct Codes. Click List to find each of the codes. Then, highlight the one at which you want to take a closer look.
Note: Self Employed (Clergy) has no "Withold Taxes" boxes marked in the Setup
Note: Self Employed (Clergy Earnings) has both Federal, Fed Pit and State, State Pit "Withhold Taxes" boxes marked in the Setup