Compensation Package with Prepaid Debit Card

Can you tell me if there are any stipulations to offering a prepaid debit card for an allotted amount of hospitality to a church employee as part of their compensation package?

Would they then would be responsible for maintaining receipts to offset this amount that was given to them, for any auditing?

Thank you for any help with this!

Comments for Compensation Package with Prepaid Debit Card

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Jun 01, 2018

Taxable Income
by: Vickey

It would be taxable income to them and need to be reported in Box 1 on their W-2.

See this article on giving gifts to staff:
https://www.freechurchaccounting.com/staff-gifts.html

I also want to apologize for the spam response you initially received. I have deleted the comment and have banned that author but the same spammers from those "QB experts" keep using different email addresses =(

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

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 =)

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