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.

Need a Consultation, help setting up an effective Accounting System, or someone to do your monthly bookkeeping and/or payroll?

Recommended Resource!

Online classes/courses on how to use QuickBooks Desktop and QB Online for a church! 

Click here for more details!

Use coupon code "FCA" for 10% discount!