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February 10, 2023
Question

Can I do a net zero payroll for moving expenses paid directly by my church incurred last year?

  • February 10, 2023
  • 1 reply
  • 0 views
The moving cost is income to the employee. Using, last year's end payroll, I determined the federal, state, and FICA taxes due 
 for the moving expense. Thus, I need to create a net zero payroll check on the moving income taxes. The church will pay for its share of the FICA taxes.

1 reply

Candice C
February 10, 2023

Hey there, @lenw1

 

It's great to see you back in the Community. I hope your day is going well so far. 

 

You can easily put an entire paycheck toward income tax with a few easy steps: 

 

  1. Add an Other Earnings pay type to the employee's profile.
  2. Use the gross up formula to determine the gross pay amount.
  3. Go to Payroll, then Employees.
  4. Press Run payroll.
  5. Choose an employee and pay schedule.
  6. Zero out the employee's regular pay or salary:
    • Enter 0 for regular pay hours.
    • Select the salary amount, then choose Skip salary this time only.
  7. Hit the Edit next to the total pay amount.
  8. In the Other earning box, enter the amount determined by using the gross up formula. Make sure that the other pay types are 0.
  9. Zero out all unwanted deductions.
  10. Add an amount for Federal Income tax or State Income tax.
  11. Adjust the Other earning amount as needed to get the 0.00 net pay amount.
  12. Once the net pay is zero, select OK.
  13. Pick Preview payroll, then Submit payroll.

 

Review this guide as a future reference: Create a zero net paycheck

 

I hope this helps and gets you squared away. I'm only a post away if you need me. Have a splendid Friday!