100% housing allowance

by Jimmy

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.


Comments for 100% housing allowance

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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.

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If you want to DIY your payroll, I highly recommend you look at using Gusto! It is very user friendly and their support is awesome! Plus they know how to set up and maintain payrolls for churches and nonprofit organizations.

Note: I am a "partner" of Gusto, but as I have told you before ... I never recommend anything that we or our clients have not tried and love =)

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