Health Insurance & Retirement Plan

by Charles
(Gadsden, AL)

Pastor coming to new church has acquired both health insurance and pays into a 403b through Guidestone as an individual.

Small church has no insurance or retirement plan.

Can the church and pastor agree that a portion of his salary be designated for payment to both plans and the church make the payments directly to Guidestone and those designated amounts not be taxable? Box 1 of W2 would not include those designated amounts but they would be reported in box 12 with "E" & "DD" codes.

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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 =)

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