auto allowance

Our pastor does not get a salary but we give him an automobile allowance. Do we have to show that or report it to IRS?

vickey’s reply

If it is over $600, you would send the pastor a 1099-MISC and report it to the IRS...if he is considered an independent contractor.

If he is considered an employee and is not being paid through a accountable reimbursement plan, you would send him/her a W-2 and report to the SSA...no matter what the amount is.

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