100% housing allowance

by Jimmy
(Kansas)

We have a bi-vocational pastor. He is an established teacher at a pubic school. All of his bi-vocational church salary, $42,000, is deemed a housing allowance.

This was set up from the beginning, but having come on the finance and personnel committees, I believe this raises questions with everything I have read.

Your thought would be helpful.

Jimmy

Comments for 100% housing allowance

Click here to add your own comments

Jul 02, 2017
 It depends on the facts
by: Bill OConnell

I understand your question to be:
CAN the entire comp package be designated as Housing Allowance?

The answer is yes if it is properly justified and properly approved. HOWEVER...

A better question is:
SHOULD the entire Comp package be designated as HA?

This answer is probably not - depending upon the facts.

Clergy comp packages are usually set up in tax inefficient ways, and a package that is all HA is likely inefficient. It is better to start with getting the pastor tax free entitlements.

Please call me at 617-921-9321 to explore the Pastor's Compensation Pyramid.

Click here to add your own comments

Join in and write your own page! It's easy to do. How? Simply click here to return to Designating Housing Allowance.



Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping and/or payroll?

Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!