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

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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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