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 matter what the amount is.

Click here to post comments

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

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 =)

Share this page:
Enjoy this page? Please pay it forward. Here's how...

Would you prefer to share this page with others by linking to it?

  1. Click on the HTML link code below.
  2. Copy and paste it, adding a note of your own, into your blog, a Web page, forums, a blog comment, your Facebook account, or anywhere that someone would find this page valuable.