Income earned in advance

I am a teacher and get paid once a month. Part of my check is "Holdback". This means that I work 10 months but get a check for 12 months.

The Holdback amount is deducted from my pay and put into an account. During the summer months, my pay comes from this account until the account is zero. The ammount taken out during the 10 months I work is never the same amount.

Is there some way I can set this up in Quicken? I am using Quicken

2003.

Thanks in advance for your assistance.

Mark

Set up an account called "Holdback," or something similar. Then set up your paycheck with all the normal deductions, reductions and transfers. Also include a transfer amount to "Holdback." I'd just use your last paycheck. Next schedule a paycheck transaction. (I'd just have it automatically enter.) When you actually get your pay stub, edit the paycheck transaction so the amounts are correct. Since the amounts vary, you'll always (or almost always) have to edit the amounts. When summer comes and your paychecks stop, set up a separate paycheck that transfers mney from the Holdback account. (I haven't actually set up a paycheck this way, so I don't know if it's actually possible.) You may need to manually create a pay transaction so it takes the money from Holdback.

Another way to do it, if you don't care about tracking the holdback amount, is simply to create a paycheck transaction with the "net" amount, that is, ignoring the holdback amount. Then you'll just schedule the paycheck for 12 months instead of 10, as above.

Now I have a question. I have a couple friends who are teachers. They choose to be paid 10 times a year (instead of doing the holdback thing). They take a proportionate amount from each month's check and put it in a money market or savings account. When summer arrives and their paychecks stop, they live off what's in the money market or savings account. This way

*you* get the little bit of interest the money earns during the year instead of letting the school district have it.

Hope this helps,

Regards,

Margaret

OOPS, my question was, "why not take your money when you earn it, and let it earn interest during the year?" Or does your school district not provide this option?

Regards,

Margaret

Would suggest one slight modification to Margaret's reply to simplify:

Do not think you will need a 'Paycheck' transaction for the two summer months - a simple transfer from 'Holdback' to checking should suffice. I am assuming that all of the deductions and with-holding categories are covered in the 10 regular paychecks.

I assumed that since the school district is holding part of his pay, that deductions/reductions would be taken at actual payment time. But you're right, perhaps they do all withholding up front. That would be simpler.

Regards,

Margaret

You all are the best! Everytime I get stumped, I ask this group and somebody figures out what I could not. Thank you all.

I setup a Transfer account as a Pre-tax deduction, I have to do that so that in the months - December and the summer that money gets deducted from the Holdback account - I use that as income account. The taxes and such are taken out over 12 paychecks and not 10.

And yes, this is the only option of pay in this school district. I would much rather have the choice and take care of my own money but that is not an option here.

Again - thank you.

Mark