Pastor only receives a housing allowance; does he get a W2?

Our Pastor does not receive any salary; only a housing allowance. Do I need to send a W2 with box 14 filled out only or what is the best way to handle it? We have no other employees so don’t even have payroll software.

6Comments

w2 for housing allowance only?

AAnonymous

I want the w2 for all my employees even ministers with only housing allowance. My software system can't generate payroll unless there is salary so I enter in $1 for salary each pay period in order to generate the housing payment. I can then do an adjustment at the end of the year for the minister to put it all into housing. Even if I didn't take that last step, the minister can put the entire amount into housing on his taxes as that is what was approved.

Answer

AAnonymous

Yes, since the IRS doesn’t look at box 14 and it is for informational purposes only, I simply drafted a letter following this post: https://www.freechurchaccounting.com/how-do-i-write-a-housing-allowance-letter-for-tax-purpose.html and gave it to the pastor so they can report that income when they file their taxes.

Same question

AAnonymous

Is there an answer to this question?

Thanks

AAnonymous

Thanks! I didn’t see those before. I will write a letter.

Same question

AAnonymous

Same question

Only Housing allowance question

AAnonymous

same question