We recently had an employee that left her salaried position to have open heart surgery. We are looking for someone to take over the responsibilities of the job. However, after she recovers, we are giving her the opportunity to work hourly for the church again with different responsibilities requiring less time.

In the meantime, we would like to provide her with gifts of benevolence to help the loss of income. Is it best to have her submit an official resignation so we can provide her with benevolence-monetary gifts(which would be untaxed) during that time OR is it best that she remains an employee under a leave of absence? -- thereby the compensation is taxed. Any guidance is most appreciated.

Click here to post comments

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

Need training on how to use QBO or Aplos effectively for a church or better yet ...need an expert in either of those accounting software to do your monthly bookkeeping and/or payroll? See more on our accounting services!

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.