Non-salaried ministers and HA

by Valerie

We do not pay our pastors a salary.

We have a designated offering one Sunday every month and whatever amount that offering is will be immediately distributed to the pastors using a preset percentage which has been recommended by the board of elders and approved by the congregation, and remains in place indefinitely until a change is made.

While it is a generous amount, it in no way comes close to a salaried pastor's wage, and 100% is officially - and realistically - designated as HA.

Based on my reading, I am thinking we do not need to give our pastors W-2's?

A letter should be sufficient?

I saw the sample you had on the blog and thought I could use something similar. I have given W-2's in the past with a note in box 14 and nothing more. The tax software will no longer allow me to create a W-2 unless there is at least one number in one of the wage boxes, hence my question about a letter only.

Thank you for any help you can give.

Click here to post comments

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

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!