The United Church of Canada L Église Unie du Canada. Pastoral Charge Payroll Service Understanding the Payroll Reports

Transcription

1 The United Church of Canada L Église Unie du Canada Pastoral Charge Payroll Service Understanding the Payroll Reports 1

2 ADP Payroll Reports ADP generates many payroll reports each time they process your payroll. Pastoral Charge Treasurers have found the following provide the information needed for church accounting purposes (though feel free to check out the others, if you wish). Payroll Register Pay Statement Daily Update Report Journal Entry Report & Totals Report - to reconcile ADP deduction from pastoral charge bank account 2

3 Payroll Reports - Payroll Register Shows employer and employee United Church-UC (pension & benefits) and Canada Revenue Agency-CRA (tax, Canada Pension Plan-CPP, & Employment Insurance-EI) employee remittances Provides current and year-to-date data Allows you to ensure correct set-up by cross referencing remittances appearing on the Payroll Register to what should appear (see Summary UC Benefits & Pension Contributions on pages 8 & 9) 3

4 1. Revenus Earnings 2. Retenues Deductions Earning Titles Deduction Titles 3. $00.00 CRDAPP set up for Ministry Personnel 4. EE BENS ER BENS RCP set up for Lay Employee PAYROLL REGISTER current amounts $0.00 YTD amounts $ Earnings Column list all earnings and values of each; includes employer paid benefits (CORE BEN, EMP INDM, RCP) and employer paid pension (EMPR PEN) 2. Deductions Column list all deductions and values of each; includes employee paid benefits (OPT H/D, LIFE MEM/SPOUSE, AD&D, LTD) and employee paid pension (R CO PEN) 3. Highlights where the Net Pay for employee(s) is located current amounts $0.00 YTD amounts $0.00 current amounts $ ER BENS and EE BENS are calculations only; ER BENS = sum of employer benefit remittances (plus sales tax if applicable); EE BENS = sum of employee benefit remittances (plus sales tax if applicable) ER BENS + EE BENS = UCCGBEN on the Daily Update Report EMPR PEN + R CO PEN = UCCGPENS on the Daily Update Report YTD amounts $0.00 4

5 Payroll Register what you should see in the earnings column REGULAR base salary - Lay/MP Lay Employee=Lay; Ministry Personnel=MP Codes for Clergy Residence Deduction (CRD) / Housing Allowance / Manse - MP CRD amount approved on T1213, subject to EI only CRDAPP housing allowance cash (not included in pensionable earnings-pe) CRDAPP P CRD T1213 amount (included in PE) - new compensation model CRD T1223 amount (T1213 not approved), subject to EI & Income Tax CPPADJ housing allowance cash (not included in PE) CPPADJ P CRD T1223 amount (included in PE) - new compensation model Not eligible for CRD, excess housing allowance over T1213 approved amount, manse top-up NOCRDAPP housing allowance cash (not included in PE), subject to EI, CPP/QPP & Income Tax Manse Processing CRD eligible, T1223 will be filed with minister s personal tax return MANSECRD housing benefit non-cash, manse fair rental value (not included in PE), EI only UTILNOTX utilities paid by the church, not subject to any CRA remittances Manse Processing Not eligible for CRD, T1223 will NOT be filed with minister s personal tax return MANSETAX housing benefit non-cash, manse FRV(not included in PE), subject to all CRA remittances UTILTAX utilities paid by the church, subject to CPP/QPP & Income Tax 5

6 Payroll Register what you should see in the earnings column PEN EARN AUTO VAC RCP EMP INDM EMPR PEN CORE BEN TB LIF F TB LIF P TB MED P pensionable earnings - Lay/MP MP=base x 1.4 (old compensation model) MP=salary (new compensation model) MP lives in manse=base x 1.4 Lay=salary Lay Employee=Lay; Ministry Personnel=MP auto vacation % added to regular pay optional for Lay (casual/hourly) employer paid benefit remittances Lay/MP employer paid benefit remittances MP employer paid pension remittance Lay/MP employer paid benefit remittances - Lay/MP taxable life federal, taxable benefit Lay/MP taxable life provincial, taxable benefit (Quebec) Lay/MP taxable medical plan, taxable benefit (Quebec) Lay/MP 6

7 Payroll Register earnings column Other Earnings for Ministry Personnel Taxable Allowances (payable, taxable, reportable on T4): MILE TAX for taxable allowances related to mileage/travel TELE TAX for taxable allowances related to telephone EDUC TAX for taxable allowances related to continuing education TXB ALLW general earning code for taxable allowances Expenses (payable, non-taxable, non-reportable on T4) MILEAGE for expenses related to mileage/travel TELEPHONE for expenses related to telephone EDUC EXP for expenses related to continuing education EXPENSE general earning code for expenses 7

8 Payroll Register what you should see in the deductions column For Lay and Ministry Personnel GOV PENS CRA Canada Pension Plan (employee portion) EI CONT FEDL TAX R CO PEN LTD, OPT H/D LIFE MEM/SPOUSE, AD&D ER BENS EE BENS CRA Employment Insurance (employee portion) CRA Fed. & Prov. Tax (employee portion) employee paid United Church pension remittance employee paid United Church benefit remittances sum of employer benefit remittances (plus sales tax in ON, QC and MB, see below) sum of employee benefit remittances (plus sales tax in ON, QC and MB, see below) For Lay and Ministry Personnel working in Ontario, Quebec, or Manitoba PROV TAX Provincial Tax (Quebec) QPP QPIP PST ON/QC 1/RST MB 1 PST ON/QC 85 PST ON 2 PST QC 2 RST MB 2 Quebec Pension Plan Parental Insurance Plan (Quebec) PST ON/QC/RST MB PST 1 + PST 85 + PST 2 Ontario/Quebec/Manitoba sales tax on employee benefits: LIFE MEM/SPOUSE, AD&D, LTD Ontario/Quebec sales tax on employee benefits: OPT H/D Ontario sales tax on employer benefits: CORE BEN, RCP, EMP INDM Quebec sales tax on employer benefits: CORE BEN, EMP INDM Manitoba sales tax on employer benefits: CORE BEN 8

9 Summary - United Church (UC) Benefits Employer Paid Benefits: Core health, dental & life insurance (CORE BEN) Restorative Care Plan (RCP) Employer Indemnity (EMP INDM) Ministry Personnel Employee Paid Benefits: Long Term Disability (LTD); below age 64 ½ Optional Coverage: Optional Health & Dental (OPT H/D) Optional Life Insurance Member (LIFE MEM); below age 65 Optional Life Insurance Spouse (LIFE SPOUSE); below age 65 Optional Accidental Death & Dismemberment (AD&D); below age 65 9

10 Summary - UC Pension Contributions Employer Pension Contribution: 9% of pensionable earnings (EMPR PEN) Employee Pension Contribution: 6% of pensionable earnings (R CO PEN) Pensionable Earnings (PEN EARN) Ministry Personnel= base salary x 1.4 (old compensation model) = base salary x 1.4 (minister lives in manse) = salary (new compensation model) Lay Employee = salary 10

11 Auditing UC P&B Remittances Some Treasurers use Tools for Treasurers to audit the pension & benefits remittances deducted by ADP. If you wish to do so, an excel spreadsheet can be found at select Budgeting Tools for Treasurers - calculating United Church pension & benefits. 11

12 CRDAPP Statement of Earnings & Deductions (Pay Statement) Generated for each employee Treasurer to pass on to the employee after every payroll has been processed Shows current and year-to-date data Special note - taxable benefits will be added, then subtracted from the pay statement since they are taxable but not payable 12

13 Daily Update Report Provides the total current and year-to-date amounts to be deducted from the pastoral charge account, and provides a breakdown as follows: Canada Revenue Agency/Revenue Quebec remittances Total net pay to employees Pension & benefits remittances ADP service fees 13

14 United Church Name CRA Business Number and Remittance Frequency CRA/Revenue Quebec Remittances FEDL TAX Income Tax (includes Federal & Provincial tax) PROV TAX Quebec Provincial Tax only EI CONT Employment Insurance (employee and employer contributions) CAN PEN Canada Pension Plan (employee and employer contributions) QC PEN Quebec Pension Plan (employee and employer contributions) TOT STATS CRA remittances ADP submits on your behalf TOT NPAY Total of net pay to all employees UC Pension & Benefit Remittances UCCGBEN Total (employee & employer) benefits remittances sent to UC; ER BENS + EE BENS from Payroll Register UCCPENS Total (employee & employer) pension remittances sent to UC; EMPR PEN + R CO PEN from Payroll Register TOT PAYROL Total Payroll excluding ADP Service Charges SERV CHRG ADP Service Charges (see ANALYSIS OF SERVICE CHARGES below for breakdown) GST applicable tax GRAND TOT Total payroll debit from Church Account 14

15 CRDAPP CO. CPP CO. EI EMP. CPP EMP. EI = Employer CPP contribution = Employer EI contribution = Employee CPP contribution = Employee EI contribution Reconciling ADP deduction from Church Account Daily Update Report GRAND TOT provides total amount deducted from the church bank account; to reconcile. Start with the TOTAL PAYROLL EXPENSE amount provided in the Financials Reports - Journal Entry Report (2 nd page) see above Add: ER BENS (Payroll Reports - Totals Report, 1 st page) EMPR PEN (Payroll Reports - Totals Report, 2 nd page) Minus: Any miscellaneous deductions Any non payable taxable benefits (i.e., TB LIF F) 15

16 Resources ADP Client Services: ; fax: for questions regarding your payroll and payroll reports The United Church Benefits Centre: for questions regarding United Church benefits remittances National Office-Payroll Service Information Line: / , ext. 1 Standard Payroll Reports training is available through the ADP website: Payroll Service: Orientation to ADP Complete list of all earning and deduction codes (search earning and deduction codes ) Financial Handbook for Congregations (search financial handbook ) Connex (search connex ) Pastoral Charge Payroll Service (search payroll service ) 16