expense money for pastor

by Melba
(arkansas)

If money is left in yearly expense account for pastor how do we disburse it?

Comments for expense money for pastor

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Aug 21, 2019

Do NOT give the leftover funds in an AR plan to any staff person!
by: Vickey

I am assuming that you have a proper accountable reimbursement policy set up. If not...those pastor expenses could be considered taxable income in some instances.

If you have an ARP in place ... Do Not give the leftover monies in your accountable reimbursement plan to any staff person including the minister at the end of the year.

It would null and void your whole policy and you would have to include all reimbursements for the year on a W-2 as income.

See more on how to properly set up and administer an Accountable Reimbursement policy in my eBook titled: "Minister Compensation and Taxes".

It is part of the Church Accounting Package found under "Packages" in the top navigation.

Also read IRS Publication 463.

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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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