amount of cash salary to include in box 1
We have a very small church, of which I am the treasurer.
Our pastor gives us a note with the numbers to write on his W2.
We pay all of his utilities from the church budget.
He adds the $2500 (housing allowance) into his salary as well as having the church pay those bills. He gave me his note and has deducted the 2500 from his amount to enter in box 1 (which is $2500 less than his actual cash salary)
Is this correct?