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100% of salary as housing allowance.

by Mike
(Lake Park, GA)

I am moving to a congregation that is providing a monthly salary of $4200.

I have some disability income, social security as well as my wife works and has social security.

I would like for the church to pay my entire salary to my mortgage company each month.

This will allow me to pay off my house in just a few years. I don't want to do anything that is inappropriate.

I filed a form 4361 decades ago so I am exempt from Social Security taxes. Does the church need to designate this housing allowance in advance? If so when must that be done.

thanks

Comments for 100% of salary as housing allowance.

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Oct 06, 2021
 Housing Allowance May Affect Disability Benefits
by: Vickey

First and foremost, please check with someone knowledgable in Social Security and Disability benefits, as I believe your housing allowance will affect your benefits.

Even though the church is paying the mortgage company directly ... which I strongly discourage ... it is still considered a housing allowance and must be reported as part of your compensation even though with an approved 4361...it will not be taxable on your personal income tax return.

See more on that in this article:
https://maximizemysocialsecurity.com/are-housing-allowances-minister-counted-earnings

Yes...a housing allowance MUST be designated and approved by your governing body "in advance".

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

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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