Salary & travel expense broken down

Can a pastor receive his salary in two parts? 60% for salary and 40% for travel expense.
He is also given a parsonage. How should this be
reported on his W-2? Is he required to only report
his salary?

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Comments for Salary & travel expense broken down

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Sep 05, 2010

Travel Expenses
by: Vickey

It would depend on how the travel expenses were paid. If it was part of an account reimbursement plan the travel expenses would be tax-free, but it would only be tax free for the actual expenses. It could not be set up as a percentage.

My advice is to talk to a tax professional. They would know what should be included on his W-2 and what he can deduct and what he cannot.

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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.

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