Should a pastor recieve additional compensation payment that is outside of the payroll check?
The pastor at our church is an employee of the church and receives a paycheck regularly.
In addition to the paycheck a separate check (non-payroll and no tax deducted) is given for house allowance and a reimbursement for healthcare premium.
In total the pastor receives three check every two weeks, 1 for his salaried hours via payroll and has been reduced by tax, 1 regular check from the church checkbook for house allowance without tax deductions, and 1 regular check from the church checkbook to reimburse the pastor for the payments he made to get healthcare insurance since the church does not provide health insurance.
Is this correct, legal?
Should it all go through the payroll just some items not taxed?