Pastor Designates Allotments to Fringe Benefits
Our pastor designates a certain amount of his salary for housing, life insurance and a medical reimbursement plan.
He submits receipts and we reimburse him for the expenses. Any amount left over is rolled over to his wages.
Is this type of reimbursement plan taxable to him or just the amount that is rolled over to wages?
Also, he designates an amount to a retirement plan but we pay it directly as an employee contribution. Is this taxable income?
Which of these amounts do I include on his W-2? Thanks for your help.