by Alison
(California)
I am in charge of the accounting and finances for a very small church plant. If we have properly designated an amount to be paid to our pastor as Housing Allowance and there is ZERO salary being paid, do we still need to fill out a W-2 (or W-3 or 941)? I browsed all of the earlier questions asked and it seems like a W-2 is not needed, but I just want to confirm as I can't find this particular situation in the IRS tax code.
Thank you.
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 =)