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?
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.
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 =)